Taiwan Semiconductor Manufacturing Company Limited (TSM) Rose Following Increased Guidance and Robust Demand

Core Insights - SGA's Global Growth Strategy portfolio experienced a return of -2.3% (Gross) and -2.5% (Net) in Q3, underperforming against the MSCI ACWI's 7.6% and MSCI ACWI Growth's 9.0% returns, primarily due to a lack of alignment with the current market enthusiasm for AI [1] - The investment objective of SGA is to focus on high-quality growth businesses that are expected to achieve consistent mid-teens earnings growth, along with stable revenue and cash flow [1] Company Highlights - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was highlighted as a key stock in SGA's third-quarter investor letter, with a one-month return of 5.88% and a 52-week gain of 45.27% [2] - As of January 2, 2026, TSMC's stock closed at $319.61 per share, with a market capitalization of $1.658 trillion [2] - TSMC contributed positively to the portfolio performance in Q3, with management raising fiscal year 2025 revenue growth guidance to 30% year-over-year, driven by strong demand for advanced semiconductor manufacturing [3] - TSMC's leadership in technology and manufacturing at leading-edge nodes allows it to maintain pricing power and deliver high margins, with recent results exceeding expectations due to Taiwan dollar appreciation and U.S. market openings [3] - TSMC is currently the sole provider for all leading-edge AI and smartphone manufacturing, a position that is strengthening as competitors like Intel pull back, allowing TSMC to maintain good margins despite significant investments in geographical diversification [3]