Robust Demand Boosted Taiwan Semiconductor Manufacturing Company Limited (TSM) in Q3

Harding Loevner, an asset management company, released its “Global Equity Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The fund returned 2.62% gross (2.52% net) in the third quarter of 2025, compared to a 7.74% return for the MSCI All Country World Index and 7.36% gain for the MSCI World Index. YTD, the strategy rose 10.61% (net) compared to 18.86% and 17.83% for the indexes. The firm highlighted in the letter that the last six months represented one of the strongest momentum phases in over 70 years. Since the beginning of the year, high-momentum stocks have outperformed low-momentum stocks by a remarkable 45 percentage points, with much of the growth driven by advancements in AI. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Harding Loevner 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 of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 2.15%, and its shares gained 44.62% of their value over the last 52 weeks. On December 03, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $295.45 per share, with a market capitalization of $1.532 trillion.

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

“Taiwan’s Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also reported strong results and projected full-year revenue growth of 30%, up from a previous forecast in the low-20% range, as the chipmaker benefits from robust demand for high-performance computing needed for Al. The competitive landscape in leading-edge chip technology remains favorable, with ongoing challenges at Intel and Samsung further strengthening TSMC’s pricing power with customers.”

Analyst Says Taiwan Semiconductor Manufacturing Company (TSM) Among the Best AI Stocks to Buy on the Dip

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 risk and potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared Sands Capital Select Growth Strategy’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.