Demand Boom Sent Taiwan Semiconductor Manufacturing Company Limited (TSM) Higher

Group 1: Fund Performance - Baron Durable Advantage Fund returned 2.6% in Q4 2025, closely matching the S&P 500 Index's return of 2.7% [1] - The Fund achieved a total return of 16.6% in 2025, compared to 17.9% for the S&P 500 Index and 16.1% for the Morningstar Large Growth Category average [1] Group 2: Investment Focus - In 2026, the Fund aims to invest in high-quality, large-cap companies with strong competitive advantages and consistent shareholder returns, amidst geopolitical changes, regulatory trends, and advancements in artificial intelligence [1] Group 3: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is highlighted as a significant contributor to the Fund's performance, with shares increasing by 9.0% in Q4 2025 and 55.5% for the entire year [3] - TSMC's stock closed at $361.91 on February 10, 2026, with a one-month return of 10.64% and a 75.36% increase over the past twelve months [2] - TSMC raised its 2025 revenue growth guidance to "close to mid-30s%" in USD terms, driven by strong demand for AI chips [3] - TSMC holds a 90% market share in leading-edge semiconductor manufacturing and 65% overall, indicating its unmatched competitive position [3] - The company is positioned to benefit from sustained growth due to the ongoing AI buildout, regardless of market share dynamics among competitors like NVIDIA and AMD [3]