In its Q4 letter, Sustainable Growth Advisers highlighted Taiwan Semiconductor Manufacturing Company as a leading contributor, driven by strong demand for advanced semiconductors and improving gross margins. This designation reflects the company’s dominant position in cutting-edge process nodes and its appeal to growth-oriented portfolios.

Management raised annual revenue growth guidance to the mid-30% range and signaled plans to lift AI-related revenue targets above 40%, underscoring expectations for sustained demand in high-performance computing and machine learning applications. These upgrades mark a notable increase from prior guidance and illustrate confidence in secular market trends.

The company increased its capital expenditure outlook to finance new fabrication facilities in Japan, Germany and the United States, diversifying its manufacturing footprint beyond Taiwan. This strategic expansion aims to mitigate geopolitical risks and secure customer commitments by offering localized production capacity.

Shares of the foundry have gained 87.5% over the past 12 months and jumped 10.8% in the last month, reflecting investor enthusiasm over guidance upgrades and expansion plans. With a market capitalization nearing $2 trillion, the firm’s stock performance underscores its leadership in the semiconductor industry.