Taiwan Semiconductor Manufacturing Company Limited (TSM) Surged on Strong Market Sentiment

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global 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 for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 3.54%, and its shares gained 43.40% over the last 52 weeks. On December 15, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $287.74 per share, with a market capitalization of $1.492 trillion.

Magellan Global Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2025 investor letter:

"The largest contributors to performance over the quarter were Alphabet, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and ASML. Both TSMC and ASML have benefited from positive sentiment across the semiconductor sector after OpenAI announced a series of partnerships with key industry players like Oracle, Nvidia and Broadcom. TSMC was also helped by robust second-quarter results and issuing an upgraded full-year 2025 forecast. Performance was driven by persistent, strong demand for its leading-edge manufacturing capacity, which continues to outstrip available supply."

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, 194 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the third quarter, compared to 187 in the previous quarter. In the third quarter of 2025, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue increased 6% sequentially 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 Janus Henderson Forty Fund's views on the company. 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.