Taiwan Semiconductor Manufacturing Company Limited (TSM) Continued to Benefit from Increased Demand

Munro Partners, an investment management firm, released its “Munro Global Growth Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the December quarter, the Fund returned -0.7%. The Fund’s long positions contributed to the performance, while short positions, hedging, and currencies detracted. Global equity markets delivered solid performance in 2025. US markets posted strong gains in the quarter, with the S&P 500 up 2.4% and the Nasdaq up 2.3%. Europe and Japan were among the stronger performance contributors. For more information on the Fund’s best picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Munro Global 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 for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 14.90%, and its shares gained 52.29% over the last 52 weeks. On January 14, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $327.11 per share, with a market capitalization of $1.4 trillion.

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

"Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (Connectivity) was another key contributor, continuing to benefit from the demand for compute. Importantly, TSMC plays a critical role in chip manufacturing regardless of whether a hyperscaler adopts Nvidia product, or whether they employ a custom solution like Alphabet."

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 the list of best long term growth stocks to buy according to hedge funds. Mar Vista U.S. Quality Strategy also cited the same reason for Taiwan Semiconductor Manufacturing Company Limited's (NYSE:TSM) surge in its Q4 2025 investor letter. In addition, please check out our hedge fund investor letters Q4 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.