Taiwan Semiconductor Manufacturing Company Limited (TSM) Rebounded Strongly in Q3

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. The portfolio underperformed in the quarter due to stock selection. The composite returned 5.02%, net of fees, compared to 7.62% for the MSCI AC World Net Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Hardman Johnston Global Equity 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 5.27%, and its shares gained 51.13% over the last 52 weeks. On December 26, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $302.84 per share, with a market capitalization of $1.571 trillion.

Hardman Johnston Global Equity Strategy stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2025 investor letter:

"The top individual contributors to relative performance during the quarter were Prosus N.V., Commerzbank AG, and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Ltd. Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) remains a key enabler of AI infrastructure across hyperscale, enterprise, and sovereign AI ecosystems. The company reported strong Q2 earnings in July, raising full-year 2025 revenue guidance by roughly 5 percentage points to 30% growth, with its High Performance Computing segment accounting for 60% of total sales. Momentum continued through the quarter, supported by robust monthly sales in July and August, reflecting strong demand for leading-edge AI semiconductors. TSMC has rebounded strongly since April lows, and we remain confident in the position given its near-monopolistic position in advanced semiconductor manufacturing and an attractive valuation both on an absolute and relative basis."

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 Harbor Capital Appreciation 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.