Shares of Taiwan Semiconductor Manufacturing Company (NYSE:TSM) have hit a record high, driven by a jump in demand for artificial intelligence (AI) chips. TSM stock hit a new 52-week high of $163.73 on June 5. Moreover, it is up about 2% in Thursday’s pre-market session.
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Overall, TSM stock is up about 57% year-to-date. This rise in TSM stock follows a rally in shares of Nvidia (NASDAQ:NVDA) stock. It’s worth noting that NVDA is a major customer of Taiwan Semiconductor Manufacturing Company or TSMC.
Against this background, let’s look at the hedge fund signal and investors’ sentiment on TSM stock.
Hedge Funds Favor TSM Stock
According to TipRanks’ Hedge Fund Trading Activity tool, hedge funds are favoring TSM stock. For instance, the Hedge Fund Confidence Signal is Very Positive for TSM stock based on the activity of 46 hedge funds. Hedge funds increased their TSM holdings by 5.8M shares in the last quarter.
Investors’ Sentiment is Positive
Individual investors have a Positive view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding the stock increased by 3.2%. This suggests these investors are increasing their exposure to TSM stock amid AI-driven demand.
Overall, among the 738,341 portfolios monitored by TipRanks, 2.9% have invested in TSM stock.
Is TSM a Buy, Sell, or Hold?
Wall Street is bullish about TSM stock. It has 11 unanimous Buy recommendations for a Strong Buy consensus rating. The analysts’ price target on TSM stock is $151.28, implying 7.14% downside potential from current levels.
