RGA Investment Advisors, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter discussed President Trump’s trade policy, focusing on enduring themes and principles, and two key structural constants shaping the investment landscape: Artificial Intelligence (AI) and Life Science. The firm views both as core pillars of the next decade. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, RGA Investment Advisors 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 13.09%, and its shares gained 27.79% of their value over the last 52 weeks. On June 2, 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at $194.84 per share, with a market capitalization of $1.011 trillion.
RGA Investment Advisors stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has been a standout in an otherwise challenged semiconductor landscape. While the AI segment has flourished, broader chip markets, autos, consumer electronics, industrials are enduring one of the worst recessions in industry history. TSMC’s resilience in this challenging environment owes to its pricing power and position at the bleeding edge of chip manufacturing.
This industry bifurcation creates opportunity. The non-AI markets, which drive most of TSMC’s volume, are near cyclical lows. As demand recovers, TSMC stands to benefit from improved utilization and rising rev enues. Meanwhile, AI datacenter buildouts continue unabated. NVIDIA, TSMC’s largest customer remains central to this theme, and now hyperscalers like Google, Meta, and Amazon are following suit with custom chips also produced at TSMC. There is virtually no competition at these advanced nodes. The combination of enormous capital requirements, deep technical expertise, and a long track record of reliable execution creates formidable barriers to entry. As a result, TSMC’s competitive position is unlikely to change meaningfully over the next decade. This dominance affords the company significant pricing power, though notably, it exercises that power with discipline…” (Click here to read the full text)
A close-up of a complex network of integrated circuits used in logic semiconductors.
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, 187 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter, which was 186 in the previous quarter. While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared latest analyst views on Coatue’s favorite AI stocks. Sands Capital also commented on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2025 investor letter. In addition, please check out our hedge fund investor letters Q1 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.
