Strong Quarterly Results Lifted Taiwan Semiconductor Manufacturing Company Limited (TSM) in Q3

Core Insights - Sands Capital Select Growth Strategy reported a portfolio return of 6.3% in Q3 2025, underperforming the benchmark's 10.5% gain, driven by strong corporate earnings and AI enthusiasm [1] Company Overview - Taiwan Semiconductor Manufacturing Company Limited (TSM) is the world's largest producer of leading-edge logic chips by market share, with a market capitalization of $1.504 trillion as of November 26, 2025 [2][3] Performance Metrics - TSM's one-month return was -4.96%, but it gained 60.03% over the last 52 weeks, closing at $289.96 per share [2] - In Q3 2025, TSM's revenue increased by 6% sequentially in NT [4] Growth Drivers - TSM is expected to exceed the consensus revenue growth of 16% for 2026, driven by capacity expansion, the launch of a new iPhone with enhanced AI capabilities, and increased outsourcing from Intel [3] - Long-term projections indicate 20% annualized earnings growth through 2029, with AI as the primary growth engine, alongside growth in smartphones, PCs, servers, and automotive chips at low-to-mid-teens rates [3] Market Position - TSM ranks 9th among the 30 most popular stocks among hedge funds, with 187 hedge fund portfolios holding its shares at the end of Q2 2025 [4]