Baron Fifth Avenue Growth Fund on Taiwan Semiconductor Manufacturing Company Limited
Thesis
The Fund views TSMC as the dominant manufacturer of advanced logic semiconductors required for modern AI accelerators. AI demand is driving exceptionally strong results, including 35% year-over-year revenue growth and 58% EPS growth, while leading-edge capacity remains constrained. Management raised its full-year outlook and increased capital spending to support demand that remains above available supply. The Fund believes TSMC's leading-edge manufacturing monopoly, pricing power, and technology roadmap can sustain growth for a long period.
“We retain long-term conviction in TSMC”