Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2026 investor letter. A copy can be downloaded here. The model portfolio fell 6.88% this quarter, compared to the S&P 500’s 4.33% decline. Over the past year, the portfolio gained 8.52%, while the index increased by 17.80%. Geopolitical conflicts and inflation concerns drove quarterly volatility. Despite ongoing uncertainties, the firm remains confident that its portfolio companies will sustain strong earnings and maintain healthy balance sheets, focusing on company-specific news rather than short-term fluctuations. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Giverny Capital Asset Management highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On June 17, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $432.15 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 6.14%, and its shares gained 102.41% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.24 trillion.
Giverny Capital Asset Management stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
“I don’t believe quarterly results tell us a lot, but it’s worth noting Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) performed very well when its leading customers such as Nvidia, Broadcom and Apple saw their valuations cut during the quarter. TSMC has long traded at a PE multiple discount to its customers, but the gap is narrowing.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 6th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 234 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter, up from 224 in the previous quarter. In Q1 2026, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue increased 6.4% (in U.S. dollar terms) sequentially to $35.9 billion, exceeding the guidance. 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 the list of best photonic computing stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
