Taiwan Semiconductor Manufacturing (TSM) Positioned to Benefit From AI Demand and Potential Pricing Power

2 weeks ago 14

Attiya Zainib

Mon, February 16, 2026 astatine 10:24 AM CST 4 min read

Sands Capital Management, LLC's Technology Innovators Fund released its Q4 2025 capitalist missive for "Technology Innovators Fund". A transcript of the missive tin beryllium downloaded here. The Fund delivered mixed show during the 4th fourth of 2025, arsenic marketplace returns were progressively driven by a constrictive radical of large-cap maturation stocks, with the portfolio’s apical 10 holdings accounting for astir 59% of assets, portion respective high-valuation innovation names faced unit from slowing momentum and capitalist hazard aversion. The fund’s results reflected stock-specific challenges alternatively than wide macroeconomic shocks, with weaker show successful definite emerging exertion holdings offset by spot successful prime level and infrastructure businesses. During the quarter, the portfolio declined 6.3% connected a quarter-to-date basis, and the money generated a 14.7% instrumentality implicit the 1 year, reflecting stock-specific challenges alternatively than wide macroeconomic shocks, with weaker show successful definite emerging exertion holdings offset by spot successful prime level and infrastructure businesses. Management emphasized its semipermanent concern horizon, noting an mean yearly portfolio turnover of 21%, and stated that galore portfolio companies continued to make coagulated full-year net maturation successful 2025, supported by durable gross models tied to artificial intelligence, unreality computing, and integer transformation, adjacent arsenic enthusiasm for speculative maturation faded precocious successful the quarter. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Sands Capital Technology Innovators Fund highlighted stocks similar 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. The one-month instrumentality of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 11.99% portion its shares traded betwixt $134.25 and 380.00 implicit the past 52 weeks. On February 13, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) banal closed astatine astir $368.10 per share, with a marketplace capitalization of astir $1.91 trillion.

Sands Capital Technology Innovators Fund stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its Q4 2025 capitalist letter:

"Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest shaper of leading-edge logic chips by marketplace share. The institution reported beardown results for the astir caller quarter. It continues to execute good connected advanced-node output improvements and capableness expansions to conscionable accelerating AI compute demand. TSMC remains a cardinal beneficiary of this trend. New AI-related partnerships announced implicit the past respective months enactment a increasing multi-year gross pipeline. Taiwanese media besides reported imaginable terms increases for 5nm and much precocious nodes adjacent year, which could supply a meaningful gross tailwind successful 2026. We presumption the institution arsenic 1 of the strongest fits with our concern criteria, supported by its enactment successful precocious manufacturing, heavy lawsuit relationships, and increasing relation successful enabling next-generation technologies."

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