Is Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) the Best Growth Stock to Buy for the Next 3 Years?

On April 29, Dan Ives of Wedbush Securities joined ‘Power Lunch’ connected CNBC to sermon his outlook for the tech assemblage and expressed that tariffs aren’t stopping the AI revolution. According to Ives, the captious question for the assemblage was whether spending, peculiarly CapEx, was being maintained. He expressed assurance that CapEx was holding up and predicted that the forthcoming results from large tech companies would service much arsenic a assurance booster for the market, alternatively than fueling the existing fears. As immoderate investors are of the thought that concerns astir a imaginable brushed spot successful the system remain, there’s a penchant for safer investments successful security and different unchangeable sectors, alternatively than large tech. However, Ives acknowledged that portion uncertainty had been prevalent successful caller weeks, his ain survey enactment and tract probe bespeak that AI-related spending stays strong. He noted that, portion determination were areas of the unreality assemblage wherever spending was accelerating, the wide uncertainty would apt effect successful wide guidance ranges from companies.

Michael Darda, the Managing Director, Chief Economist, and Macrostrategist astatine ROTH, besides believes that AI would make coagulated returns successful the future. Ives agreed with Darda’s appraisal and stated that enterprises were seeing akin advancements and could not spend to permission their AI projects down without the hazard of consequently falling behind. He besides pointed retired that for companies similar those successful the MAG7, the AI gyration is simply a cardinal theme, which is wherefore challenges brought guardant by tariffs would not interaction the AI gyration arsenic much. Darda changed his outlook from bearish to bullish connected tech and AI precocious owed to his idiosyncratic acquisition with AI tools, which helium felt had improved implicit the past year.

Dan Ives reiterated that, contempt the uncertainty created by tariffs, the request for bundle remained a information blanket, and spending by hyperscale companies is expected to continue.

Our Methodology

We sifted done fiscal media reports to compile a database of the apical maturation stocks to bargain for the adjacent 3 years. We past selected 15 stocks with a 3-year gross compound yearly maturation complaint of implicit 20%. The stocks are ranked successful ascending bid of the fig of hedge funds that person stakes successful them, arsenic of Q4 2024, which was sourced from Insider Monkey’s database.