Taiwan Semiconductor Manufacturing Company Limited (TSMC) has experienced a notable surge in its stock price, driven by renewed enthusiasm surrounding artificial intelligence (AI) technologies. As of September 18, 2025, TSMC’s shares closed at $268.64, reflecting an impressive 52.45% increase over the past year. The company, which specializes in the manufacturing, packaging, testing, and sale of semiconductor devices, is currently valued at a market capitalization of $1.393 trillion.
Macquarie Asset Management Highlights TSMC’s Performance
In its second quarter investor letter for 2025, Macquarie Asset Management noted the strong performance of TSMC, attributing much of this success to a rebound in optimism surrounding AI. The S&P 500® Index, a benchmark for the U.S. large-cap equity market, rose 10.94% during the same period, following easing concerns about potential tariffs from the Trump administration. Macquarie’s Core Equity Fund Institutional Class outperformed the benchmark with a return of 11.94%.
The fund’s letter stated: “Taiwan Semiconductor Manufacturing Company Limited (TSMC) performed well during the quarter largely due to renewed optimism about artificial intelligence (AI), which was weaker in the first quarter. The company continued to be exceptionally well positioned in leading-edge semiconductor manufacturing used across AI and non-AI applications such as personal computers, smartphones, and handheld devices, all of which require the fastest and most power-efficient chips.”
Hedge Funds Maintain Interest in TSMC
TSMC ranks ninth on Macquarie’s list of the 30 Most Popular Stocks Among Hedge Funds. Data shows that 187 hedge fund portfolios included TSMC at the end of the second quarter of 2025, maintaining its popularity from the previous quarter. While Macquarie acknowledged the risks associated with investing in TSMC, the firm expressed strong conviction that certain AI-related stocks may offer greater potential for high returns.
Investors seeking alternatives to TSMC are encouraged to explore Macquarie’s findings on AI stocks, some of which are suggested to hold upside potential of 10,000%.
For detailed insights, readers can access Macquarie’s full investor letter and explore additional resources relating to hedge fund performance in Q2 2025. Overall, the renewed focus on AI applications is likely to shape the future trajectory of companies like TSMC, underscoring the intersection of technology and investment strategy.
