TSM Shares Double in Giverny Portfolio: New Dynamics in the Chip Industry

Taiwan Semiconductor Manufacturing Company (TSM) has nearly doubled its share price since Giverny Capital Asset Management added it to the portfolio last summer.

Global Leadership in Chip Manufacturing and Competitive Edge

TSM serves as the primary supplier of cutting‑edge chips for giants such as Nvidia, Broadcom, and Apple. Its mastery of 7nm and sub‑7nm process technologies exerts a pivotal pressure on the worldwide semiconductor supply chain.

Giverny Portfolio Quarterly Performance and TSM's Contribution

Giverny’s Q2 2026 investor letter reports a model‑portfolio return of 13.70%, compared with the S&P 500’s 15.20% gain. TSM’s weight in the portfolio drove a substantial portion of the 78.11% year‑to‑date total return.

■100% increase: TSM shares purchased last summer have almost doubled.

■$1.86 trillion: TSM’s market capitalization cements its status as one of the largest players in the chip sector.

■68%: June 2026 revenue rose 68% year‑over‑year.

■$35.9 billion: Q1 2026 revenue reached $35.9 billion, surpassing guidance.

Investor Perspective: Appeal and Risks of TSM

Giverny positions TSM as a high‑quality earnings compounding engine, yet notes that certain AI‑focused equities may offer greater upside with lower downside risk.

■Strong Margins: TSM’s profit margins outperform most peers.

■AI Integration: The firm is deepening its competitive moat through AI‑enhanced design and manufacturing.

■Geopolitical Exposure: Taiwan’s location introduces ongoing regional tension risk.

■Onshoring Trend: Expanding chip capacity in the U.S. and Europe could boost long‑term demand for TSM’s services.

Markets are watching TSM’s extraordinary growth trajectory and strategic positioning closely. Investors, however, must balance the geopolitical and regulatory uncertainties against the company’s growth story. While short‑term volatility may persist, TSM’s long‑term value‑creation potential remains attractive for institutional investors capable of absorbing higher risk.