Taiwan Semiconductor Manufacturing Company Limited (TSM) Rose Following Strong Results and Positive Guidance

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large Growth Fund 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 of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -4.24%, and its shares gained 48.68% of their value over the last 52 weeks. On November 17, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $282.01 per share, with a market capitalization of $1.463 trillion.

RiverPark Large Growth Fund 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): TSM shares rose during the quarter following strong Q3 results and positive guidance. The company reported revenue of approximately $32 billion, driven by robust demand for advanced 3-nanometer and 2-nanometer process technologies. Gross margins were 59.5% and operating margins were 50.6% despite industry-wide cost pressures, reflecting TSM’s unrivaled efficiency and scale. Investor sentiment improved as AI-related semiconductor demand continued to offset weakness in legacy nodes.

We view TSM as a critical enabler of the global semiconductor ecosystem. Its leadership in cutting-edge manufacturing, deep relationships with leading chip designers, and disciplined capital allocation provide durable long-term advantages. The secular growth in AI compute and chip content per device should provide TSM a long runway of sustained growth."

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 9th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 187 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the second quarter, the same as in the previous quarter. In the third quarter of 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) revenue increased 6% sequentially in in NT. While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared the list of best aggressive growth stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.