Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks remain a focal point for Wall Street, with the Wedgewood Composite's net return at 5.9%, underperforming the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1][2] Company Performance - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported a one-month return of 4.92% and a 52-week gain of 46.62%, closing at $294.51 per share with a market capitalization of $1.527 trillion on October 21, 2025 [2][3] - Approximately 60% of TSM's revenue comes from manufacturing AI and high-performance computing chips for major clients like Nvidia, Apple, and Amazon, highlighting its critical role in the semiconductor industry [3] Investment Positioning - TSM has been a significant contributor to Wedgewood's performance in recent quarters, leading to a re-rating of its stock, which exceeded the firm's 10% maximum portfolio weight, prompting a slight trimming of positions [3] - TSM ranks 9th among the 30 most popular stocks among hedge funds, with 187 hedge fund portfolios holding its shares at the end of the second quarter, indicating strong institutional interest [4]