Sustainable Growth Advisers (SGA), an investment management company, highlighted Taiwan Semiconductor Manufacturing Company (NYSE: TSM) as a top contributor to performance in its first-quarter 2026 investor letter for its Global Growth Strategy.
The SGA Global Growth Portfolio returned -13.6% gross and -13.8% net during the quarter, compared to the MSCI ACWI return of -3.2% and the MSCI ACWI Growth return of -7.7%.
AI disruption narratives significantly affected markets in the first two months of the quarter, dragging down software, information services, payments, and insurance broker stocks.
Geopolitical tensions in the Middle East during March caused a spike in oil prices, contributing to broader market volatility and pushing investors toward more defensive positioning.
SGA stated that prioritizing high-quality businesses with strong balance sheets, durable cash flows, and diversified end markets provides resilience against short-term geopolitical shocks.
TSM closed at $441.40 per share on June 15, 2026, with a one-month return of 10.34% and a 52-week gain of 102.53%, giving the company a market capitalization of $2.29 trillion.
In its investor letter, SGA noted that TSMC “delivered margins that proved more resilient than feared and management reaffirmed roughly 30% revenue growth for the year.”
SGA also pointed to TSMC’s raised AI revenue growth outlook, stating the company projected “a mid-to-high-50% CAGR through 2029, underscoring its integral role in accelerating AI infrastructure demand.”
The firm further noted that “strategic steps to diversify manufacturing outside Taiwan, including new facilities in the U.S., Japan and Germany, further strengthen TSMC’s position.”
SGA concluded that “with its technology leadership, strong customer relationships, and disciplined execution, TSMC remains well-positioned to deliver strong double-digit revenue and earnings growth over the coming years.”
TSM ranks sixth on a widely tracked list of 40 most popular stocks among hedge funds heading into 2026, reflecting broad institutional confidence in the company’s trajectory.
According to available data, 234 hedge fund portfolios held TSM at the end of the first quarter, up from 224 in the previous quarter, marking a notable increase in institutional ownership.
In the first quarter of 2026, TSMC’s revenue increased 6.4% sequentially in U.S. dollar terms to $35.9 billion, exceeding the company’s own guidance and reinforcing its operational momentum.
TSMC remains the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies at the cutting edge of process node development.
The company’s geographic diversification strategy, combined with its dominant position in AI-related chip production, continues to make it a central holding for growth-oriented institutional investors worldwide.
