Taiwan Semiconductor Manufacturing (TSM) Positioned to Benefit From AI Demand and Potential Pricing Power

Group 1: Fund Performance Overview - The Technology Innovators Fund experienced mixed performance in Q4 2025, with the top ten holdings comprising approximately 59% of assets, indicating a concentration in large-cap growth stocks [1] - The portfolio declined by 6.3% quarter-to-date, but achieved a 14.7% return over the year, reflecting stock-specific challenges rather than broad macroeconomic shocks [1] - Management highlighted a long-term investment horizon with an average annual portfolio turnover of 21%, emphasizing continued earnings growth in 2025 driven by durable revenue models in AI, cloud computing, and digital transformation [1] Group 2: Taiwan Semiconductor Manufacturing Company (TSMC) Insights - TSMC is recognized as the world's leading contract chip manufacturer, with a one-month return of 11.99% and a market capitalization of approximately $1.91 trillion as of February 13, 2026 [2] - The company reported strong quarterly results and is well-positioned to benefit from increasing AI compute demand, supported by advanced-node yield improvements and capacity expansions [3] - TSMC's new AI-related partnerships are expected to enhance its multi-year revenue pipeline, with potential price increases for 5nm and more advanced nodes anticipated to provide a revenue tailwind in 2026 [3]