Taiwan Semiconductor Manufacturing Company Limited (TSM) Jumped as Market Favored AI Capex Winners

3 weeks ago 11

Soumya Eswaran

Mon, July 20, 2026 astatine 8:47 AM CDT 3 min read

L1 Capital, an concern absorption firm, released its "L1 Capital International Fund" (unhedged) second-quarter 2026 capitalist letter. A transcript of the missive tin be downloaded here. The missive discusses the existent concern situation arsenic a 'two-speed' but resilient planetary economy, accompanied by an uncertain future. The missive explores the imaginable of an AI bubble, distinguishing betwixt beardown fundamentals and speculative momentum. Additionally, the marketplace displays a 'narrow' character, marked by precocious exuberance and pronounced over-pessimism. Against this backdrop, the Fund returned +2.6% (net of fees) during the June 2026 quarter, compared to the benchmark instrumentality of +12.5% (all successful A$). The underperformance was driven much by which investments were not held successful the Fund. The Fund remains focused connected quality, valuation and the avoidance of imperishable superior loss, and believes the portfolio is positioned to present charismatic risk-adjusted returns for diligent investors. In addition, you tin cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, L1 Capital International Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's starring declaration spot manufacturer, producing precocious semiconductors for large planetary exertion companies. On July 17, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed astatine $398.37 per share. One-month instrumentality of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -12.50%, and its shares gained 71.32% implicit the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a marketplace capitalization of $2.07 trillion.

L1 Capital International Fund stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its Q2 2026 capitalist update:

"At an idiosyncratic banal level, portion the Fund had much affirmative contributors than antagonistic detractors to returns, quarterly show was again mixed. TSMC contributed much than 2.0% to the Fund's returns (measured successful A$). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and to a lesser grade Nvidia, benefitted from the marketplace favouring AI capex winners. Our valuation of some businesses continues to increase. Nvidia and TSMC are presently apical 5 holdings successful the Fund."

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is successful 6th presumption connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 234 hedge money portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) astatine the extremity of the archetypal quarter, up from 224 successful the erstwhile 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 admit the imaginable of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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