We recently published a list of Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other Billionaire Chase Coleman’s stocks with huge upside potential.
Equity markets achieved an unprecedented winning streak over the past two years at the back of an artificial intelligence-driven run. Major US indices were on a roll, soaring to record highs as investors tailored their investments to opportunities around the revolutionary technology. Chase Coleman is one hedge fund manager who benefited from the impressive run by investing his hedge fund’s money in some of the top-performing AI stocks.
Founded by Coleman in 2001, Tiger Global Management LLC was one of the best-performing hedge funds after gaining 24% in 2024. The impressive return came on the billionaire investor betting on some of the biggest companies with significant exposure to artificial intelligence.
Fast forward, Coleman is one of the most significant casualties of the broader stock market correction. With the S&P 500 pulling back by about 6% and tech-heavy Nasdaq down by about 8%, the billionaire investor has felt the full brunt of the artificial intelligence-driven run cooling off. A good number of Tiger Global Management stock holdings have shed more than 10% in market value as the overall stock market correction gathers steam.
READ ALSO: Billionaire Seth Klarman’s 10 Stock Picks with Huge Upside Potential and Billionaire Andreas Halvorsen’s 10 Stock Picks With Huge Upside Potential.
While up to 20% pullbacks might rattle most investors, billionaire Investor Coleman’s strategy focuses on long-term investing. Consequently, he is never perturbed by short-term market corrections. Coleman continues to maintain significant holdings in tech giants on expectations the segment will continue growing amid the artificial intelligence boom.
“Think about it in terms of companies investing in these technologies, and how well they use it,” he said, giving the example of Amazon using ChatGPT to facilitate shopping. “It’s going to be gradual. Be patient.”
We combed Tiger Group Management LLC SEC Q4 2024 13F filings to identify Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential. We focused on stocks that have pulled back significantly and therefore command significant upside potential. We then analyzed the stocks on why they stand out, as solid value investments. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Taiwan Semiconductor (TSM): Among Billionaire Chase Coleman’s Stocks with Huge Upside Potential
A close-up of a complex network of integrated circuits used in logic semiconductors.
Tiger Global Management LLC’s Stake Value: $717.87 Million
Upside Potential as of April 30: 32.84%
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest semiconductor foundry. It specializes in manufacturing chips for other companies, including Apple. While the stock has slumped 18% year-to-date, it is one of billionaire Chase Coleman’s stocks with tremendous upside potential amid the artificial intelligence revolution. Analysts at Bernstein have reiterated an Outperform rating on the stock with a $251 price target.
The Outperform rating comes on the heels of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which delivered March revenue of NT$286 billion above the high end of guidance and above consensus estimates. Its first quarter 2025 revenue was up 42% year over year to NT$839 billion, affirming strong demand for the company’s foundry services. The company’s competitive edge stems from its 3 nanometer technology that ensures chip traces are spaced at a minimum of 3nm.
With the company planning to launch 2nm and 1.6nm chips, it is sure to strengthen its competitive edge and attract more deals amid the push for small and powerful chips. The fact that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) does not compete against its clients Nvidia, Apple, and Broadcom affirms its growth prospects in the sector. It has also unveiled its next cutting-edge logic process technology, A14, as it seeks to drive AI transformation by delivering faster computing and greater power efficiency.
Overall, TSM ranks 9th on our list of Billionaire Chase Coleman’s stocks with huge upside potential. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
