Nomura Global Growth Fund on Taiwan Semiconductor Manufacturing Co. Ltd.
Thesis
Taiwan Semiconductor Manufacturing was a notable outperformer and contributor during the quarter. The fund attributes the strength to upward earnings revisions as AI spending and capacity shortages supported foundry demand. The broader portfolio outlook remains constructive on AI infrastructure as a multiyear capital-expenditure cycle.
“AI spending and capacity shortages provided a strong tailwind for semi-cap equipment names, memory-chip names, and foundry stocks.”
Key risks
- Relatively high valuations and market extremes