Taiwan Semiconductor Manufacturing Company Limited

(New York Stock Exchange)
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Bullish +75

Why Bell Global Equities Fund Continues to Favor Taiwan Semiconductor Manufacturing Company (TSM)

AI infrastructure Advanced packaging Company update AI-generated analysis

πŸ“ˆ Bell Global Equities Fund continues to favor TSMC as a top pick, citing its status as the world's leading semiconductor foundry.

πŸ’° TSM reported exceptional operating momentum with August sales showing a 36% year-over-year revenue increase.

🀝 A strategic collaboration with ASML on High-NA EUV and larger photomasks reinforces TSMC's long-term technology roadmap.

πŸ›‘οΈ The fund highlights TSMC's formidable barriers to entry driven by scale, deep customer relationships, and complex manufacturing execution.

πŸ“¦ Advanced packaging is identified as a significant additional growth opportunity for the company.

πŸ’Ό As of October 28, 2026, TSM holds a market capitalization of approximately $2.5 trillion.

πŸ“‰ Despite a recent one-month stock return of -5.80%, the fund remains bullish on TSM's sustainable profitability and pricing power.

πŸ† TSMC is ranked 6th among the most popular stocks held by hedge funds heading into 2026.

Bullish Signals
  • Bell Global Equities Fund maintains a strong favor for TSM, citing exceptional operating momentum with August sales up 36% year-over-year.
  • The company benefits from sustained confidence in advanced computing demand across competing AI chip designers.
  • Advanced packaging provides an additional growth opportunity alongside the core foundry business.
  • A collaboration with ASML on High-NA EUV and larger photomasks reinforces the long-term technology roadmap.
  • TSMC possesses formidable barriers to entry due to its scale, deep customer relationships, and ability to execute complex manufacturing processes.
  • The company demonstrates strong revenue momentum and continued confidence in advanced computing demand.
Full Analysis
In its Q3 2026 investor letter, the Bell Global Equities Fund reaffirmed its top-tier favor for Taiwan Semiconductor Manufacturing Company (TSM), citing the company's status as the world's leading semiconductor foundry. The fund highlighted TSMC's exceptional operating momentum, specifically noting a robust 36% year-over-year revenue increase in August sales released during September. This strong performance is attributed to sustained confidence in advanced computing demand and the company's ability to serve competing AI chip designers. The investment thesis for TSM centers on its formidable manufacturing leadership, deep customer relationships, and the high barriers to entry created by its scale and execution capabilities in complex processes. The fund also points to advanced packaging as a significant additional growth opportunity that complements its core foundry business. Furthermore, a strategic collaboration with ASML regarding High-NA EUV technology and larger photomasks was noted as reinforcing TSMC's long-term technology roadmap, although commercial adoption for these specific technologies is projected for 2030 onwards. Despite a one-month stock return of -5.80% leading into the quarter, with shares trading between $266.82 and $487.47 over the last 52 weeks, the fund maintains its conviction in TSM's sustainable profitability and pricing power. The company holds a market capitalization of approximately $2.5 trillion as of October 28, 2026, and remains a key holding for investors seeking high-quality businesses with durable competitive advantages that can support long-term returns.