Warren Buffett’s Berkshire Hathaway took a stake of about $5 billion in Taiwan Semiconductor Manufacturing Co, a sign the legendary investor thinks the world’s leading chipmaker has bottomed out after a selloff of more than $250 billion, reports Bloomberg.
The Omaha-based conglomerate acquired about 60 million American depository receipts in TSMC in the three months ended September, it said in a filing. The Taiwanese company produces semiconductors for clients like Nvidia and Qualcomm and is the exclusive supplier of Apple’s custom Silicon chips. Apple remains the most valuable single holding in Berkshire’s portfolio.
Assuming Buffett bought TSMC’s ADRs at the average price for the third quarter, the stake would have cost him $5.1 billion. They currently trade at $72.80. TSMC’s shares rose as much as 9.4% in Taiwan after the disclosure, the largest intraday increase in more than two years.