Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) Surged on Renewed Optimism About AI

Macquarie Asset Management, an investment management company, released its “Macquarie Core Equity Fund” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The US large-cap equity market surged in Q2 2025, with the S&P 500® Index rising 10.94%. The equity market’s strength was due to reduced concerns over the possibility of President Trump quickly imposing harsh tariffs. Later, the administration put a pause on the tariff implementation. In this environment, the Macquarie Core Equity Fund’s Institutional Class returned 11.94% surpassing the benchmark, the S&P 500 Index. Eighty percent of the relative performance was driven by sector selection, and individual security selection accounted for the remainder. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Macquarie Core Equity 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 of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 18.17%, and its shares gained 52.45% of their value over the last 52 weeks. On September 18, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $268.64 per share, with a market capitalization of $1.393 trillion.

Macquarie Core Equity Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second quarter 2025 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) performed well during the quarter largely due to renewed optimism about artificial intelligence (AI), which was weaker in the first quarter. The company continued to be exceptionally well positioned in leading-edge semiconductor manufacturing used across AI and non-AI applications such as personal computers, smartphones, and handheld devices, all of which require the fastest and most power-efficient chips.”

In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared the list of stocks ChatGPT predicts could make you wealthy in 5 years. In addition, please check out our hedge fund investor letters Q2 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.