Demand Boom Lifted Taiwan Semiconductor Manufacturing Company Limited (TSM) to New Heights

3 days ago 8

Soumya Eswaran

Thu, February 12, 2026 astatine 9:26 AM CST 3 min read

Sustainable Growth Advisers (SGA), an concern absorption company, released its fourth-quarter capitalist missive for its “Emerging Markets Growth Strategy.” A transcript of the missive tin beryllium downloaded here. The 4th fourth of 2025 marked beardown divergence from the market. Market enactment by AI beneficiaries and revival of cyclical sectors dominated the market, portion prime maturation strategies faced challenges. In Q4 2025, the portfolio returned 0.8% (Gross) and 0.6% (Net) compared to the MSCI EM Net TR Index instrumentality of 4.7% and the MSCI EM Growth Net TR Index instrumentality of 3.3%. In 2025, the portfolio delivered beardown returns of 23.8% (Gross) and 22.8% (Net) but lagged the 33.6% and 34.3% returns for the indexes, respectively. The portfolio projects 13% gross maturation and 16% net maturation annually for the adjacent 3 years. Please reappraisal the Strategy’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, SGA Emerging Markets Growth Strategy highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) arsenic a notable contributor. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s starring shaper of integrated circuits and different semiconductor devices. On February 11, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) banal closed astatine $374.09 per share. One-month instrumentality of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 10.78%, and its shares are up 87.52% implicit the past 12 months. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a marketplace capitalization of $1.96 trillion.

SGA Emerging Markets Growth Strategy stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its 4th fourth 2025 capitalist letter:

"Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a apical contributor during the quarter, driven by robust request for precocious semiconductor manufacturing and improved gross margins arsenic AI continues to turn beardown and the non-AI conception showed signs of recovery. Management raised its gross maturation guidance to the mid-30% range, and fixed continued spot successful demand, AI-related maturation targets are expected to determination supra the existent mid-40% level. TSMC’s enactment successful cutting-edge process nodes remains undisputed. The institution raised its CapEx guidance to enactment aboriginal maturation and is expected to summation its AI gross maturation target, reflecting assurance successful the secular enlargement of high-performance computing and AI workloads. Strategic steps to diversify manufacturing extracurricular Taiwan, including caller facilities successful Japan, Germany, and the U.S., further fortify TSMC’s position. With its exertion leadership, beardown lawsuit relationships, and disciplined execution, TSMC remains well-positioned to present beardown double-digit gross and net maturation implicit the coming years. We added to the presumption connected weakness during the quarter, maintaining an above-average weight."