Taiwan Semiconductor Manufacturing Company Limited (TSM) Rose Following Increased Guidance and Robust Demand
Sustainable Growth Advisers (SGA), an investment management company, released its third-quarter investor letter for its “Global Growth Strategy.” A copy of the letter can be downloaded here. The portfolio returned -2.3% (Gross) and -2.5% (Net) in the third quarter, compared to a 7.6% return for the MSCI ACWI and a 9.0% return for the MSCI ACWI Growth. The index returns were fueled by enthusiasm for AI, whereas factors aligned with SGA’s strategy, like quality and sales stability, lagged. SGA’s investment objective is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, accompanied by stable revenue and cash flow. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, SGA Global Growth Strategy highlighted stocks such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. The one-month return for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 5.88%, and its shares gained 45.27% over the last 52 weeks. On January 2, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $319.61 per share, with a market capitalization of $1.658 trillion.
SGA Global Growth Strategy stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2025 investor letter:
"Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a contributor to portfolio performance in Q3. Management raised fiscal year 2025 guidance to 30% revenue growth year-over-year, supported by robust demand for advanced semiconductor manufacturing and strong execution across its diversified business mix. The company’s technology and manufacturing leadership at leading-edge nodes enables it to maintain pricing power and deliver high margins, with recent results exceeding expectations due to Taiwan dollar appreciation and U.S. openings. As it stands today, TSMC is the sole provider for all leading-edge AI and smartphone manufacturing and this position continues to strengthen with Intel’s pull back as subsequent advancement is only iterative unless disrupted by quantum computing. The lack of competition also allows the company to maintain good margins despite heavy investments in geographical diversification.
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