Taiwan Semiconductor Manufacturing Company Limited

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Bullish +65

Taiwan Semiconductor Manufacturing Company Limited (TSM) Doubled Since Giverny Capital Asset Management’s Entry

AI-generated analysis

📈 Giverny Capital Asset Management lists Taiwan Semiconductor Manufacturing Company Limited (TSM) as its fourth-largest position in the portfolio.

💰 TSM shares have appreciated nearly 100% since Giverny Capital purchased the stock last summer.

🏭 The company serves as the primary supplier of leading-edge computer chips for major tech firms including Nvidia, Broadcom, and Apple.

📊 June revenue surged 68% year-over-year, demonstrating accelerating growth in the semiconductor sector.

💵 Q1 2026 revenue increased 6.4% sequentially to $35.9 billion, exceeding company guidance.

📉 The stock closed at $402.30 per share on July 20, 2026, with a one-month return of -4.25%.

🚀 TSM shares have gained 78.11% over the past 52 weeks despite recent short-term volatility.

🏛️ The company holds a massive market capitalization of $1.86 trillion as of mid-2026.

📉 Hedge fund holdings increased to 234 portfolios in Q1 2026, up from 224 in the previous quarter.

⚠️ Giverny Capital suggests other AI stocks may offer greater promise for higher returns within shorter timeframes.

🧠 The firm notes that while TSM has strong margins, reliance on moonshot investments raises sustainability concerns.

📉 Despite the S&P 500 rising 10.2% in the first half of the year, 210 stocks lost value indicating market anomalies.

Bullish Signals
  • TSM is identified as a high-quality earnings compounder that benefits from AI capabilities and maintains a competitive edge.
  • Revenue growth is accelerating significantly, with June revenue up 68% from a year earlier.
  • Q1 2026 revenue of $35.9 billion exceeded analyst guidance, demonstrating strong execution.
  • The stock has gained 78.11% over the past 52 weeks, reflecting strong market performance.
  • Hedge fund interest is growing, with portfolios holding TSM increasing from 224 to 234 in Q1 2026.
  • TSM is the primary supplier of leading-edge chips for nearly every major technology company.
  • The company has a substantial market capitalization of $1.86 trillion, indicating its dominant market position.
Risk Factors
  • Giverny Capital suggests that other AI stocks may hold greater promise for delivering higher returns in a shorter time frame.
  • Recent market momentum has led to chasing behavior, with tech giants taking advantage of investor optimism amid fears of an AI bubble.
  • The stock experienced a one-month return of -4.25% as of July 20, 2026, indicating recent short-term weakness.
Full Analysis
Giverny Capital Asset Management highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) in its second-quarter 2026 investor letter, noting it as the firm's fourth-largest position. The investment manager reported that TSM shares have nearly doubled since their entry last summer, driven by the company's status as a primary supplier of leading-edge chips for major technology giants including Nvidia, Broadcom, and Apple. The article cites specific financial performance metrics from Giverny Capital, stating that TSM's revenue increased 68% year-over-year in June. Additionally, Q1 2026 revenue rose 6.4% sequentially to $35.9 billion, exceeding analyst guidance. The stock closed at $402.30 on July 20, 2026, with a 52-week gain of 78.11%, though it faced a short-term decline of 4.25% in the preceding month. Despite these strong fundamentals and its ranking as the sixth most popular stock among hedge funds heading into 2026, Giverny Capital tempered enthusiasm by suggesting that other AI stocks may offer higher returns over shorter timeframes. The firm acknowledged risks associated with TSM while maintaining conviction in high-quality earnings compounders benefiting from AI capabilities, contrasting this view against concerns about a potential AI bubble and reliance on moonshot investments.