Sustainable Growth Advisers, LP on Taiwan Semiconductor Manufacturing Company Limited
Thesis
TSMC was a top contributor and SGA maintained an above-average weight during the quarter. Demand for advanced logic and compute remains strong across AI accelerators and CPUs, supporting the need for additional leading-edge capacity. SGA believes TSMC's technology leadership, scale and deep customer entrenchment create a durable competitive advantage. Revenue is increasingly supported by recurring and repeatable categories across high-performance computing, smartphones, automotive and AI applications, reducing cyclicality. The fund expects strong double-digit revenue and earnings growth over the coming years.
“TSMC remains well-positioned to deliver strong double-digit revenue and earnings growth over the coming years.”