Taiwan Semiconductor Manufacturing Co. (TSM) is Capturing AI Growth Through Foundry Leadership

What happened: Diamond Hill Capital's Q3 2026 Large Cap Strategy investor letter highlighted Taiwan Semiconductor Manufacturing Co. (TSM) as a newly added position, citing its role as the world's largest contract chip manufacturer. Key numbers: Strategy returned 3.18% net of fees versus 2.61% for the Russell 1000 Value Why it matters: The firm said it is attracted to TSM's direct exposure to growing AI-computing demand, supported by leadership in advanced chip manufacturing and strong profitability. Diamond Hill also expects below-average returns ahead due to high equity market valuations. Market: +2.4% today ($140.16), -10.6% YTD, 0.2x vol — as of 15:17 UTC

Diamond Hill Capital's Q3 2026 Large Cap Strategy investor letter highlighted Taiwan Semiconductor Manufacturing Co. (TSM) as a newly added position, citing its role as the world's largest contract chip manufacturer.

The firm said it is attracted to TSM's direct exposure to growing AI-computing demand, supported by leadership in advanced chip manufacturing and strong profitability. Diamond Hill also expects below-average returns ahead due to high equity market valuations. Market: +2.4% today ($140.16), -10.6% YTD, 0.2x vol — as of 15:17 UTC