TSMC is favored by international institutions, and the AI wave boosts semiconductor demand
Quick Look
- A report from the investment institution SGA pointed out that TSMC has become the main source of performance contribution to the investment portfolio due to its leadership in advanced process technology and strong growth in demand for AI chips, and continues to receive increased investment from institutional investors.
- It is expected to maintain strong double-digit revenue and profit growth in the next few years.
AI-generated summary
Investment institutions pointed out that as the AI wave continues to drive global semiconductor demand, TSMC has once again become the focus of international investment institutions. (Bloomberg file photo)
[Financial Channel/Comprehensive Report] Foreign media pointed out under the title "Why is TSMC worth investing in?" that as the AI wave continues to drive global semiconductor demand, TSMC has once again become the focus of international investment institutions. The investment report pointed out that although the global market has been volatile due to geopolitical and AI fluctuations, TSMC has become the main source of performance contribution in the investment portfolio due to its advanced process technology leadership and strong growth in demand for AI chips, and continues to receive increased investment from institutional investors.
US media "Insider Monkey" reported that according to a report by investment management company Sustainable Growth Advisers (SGA), the market in the first quarter of 2026 will be affected by multiple factors, including market repricing triggered by changes in AI technology, and geopolitical tensions in the Middle East leading to rising oil prices, further exacerbating market volatility. The report pointed out that driven by the disruptive narrative of AI, industries such as software, information services, payment and insurance brokerage were generally under pressure in the first two months of the quarter, and investor risk preferences also turned conservative.
In terms of individual stock performance, TSMC was listed as an important contributor to this quarter's performance. The report pointed out that TSMC benefited from the continued expansion of demand for AI-related chips and its operating performance exceeded market expectations.
As of June 15, 2026, TSMC ADR's stock price closed at US$441.40, up 10.34% in a single month, with a cumulative increase of 102.53% in the past year, and a market value of approximately US$2.29 trillion.
The report pointed out that TSMC’s leading position in advanced process technology remains stable, and AI-related revenue growth momentum continues to be strong. The company also expects that overall revenue will maintain approximately 30% growth this year, and the AI business growth rate is expected to reach an annual compound growth rate of 50% to as high as 50% in the future, continuing until 2029.
In addition, TSMC continues to promote global production capacity layout, including setting up factories in the United States, Japan and Germany to disperse geopolitical risks and strengthen supply chain resilience. SGA believes that with its technological leadership, solid customer base and stable execution capabilities, TSMC is expected to maintain strong double-digit revenue and profit growth in the next few years.
According to SGA's statistics on "the 40 most popular stocks favored by hedge funds before 2026", TSMC ranks 6th. As of the end of the first quarter, a total of 234 hedge fund portfolios held TSMC, higher than the 224 in the previous quarter, indicating that institutional investors continue to increase their investment.
However, the report also mentioned that although TSMC has strong fundamentals and growth potential, some AI-related stocks may present higher potential return opportunities in terms of market expectations and evaluations.
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