Columbia Threadneedle Investments, an investment management company, released its fourth-quarter 2025 investor letter for “Columbia Global Technology Growth Fund”. A copy of the letter can be downloaded here. Markets advanced modestly higher in Q4 2025, with the S&P 500 returning 2.66%, the Nasdaq 100 gaining 2.47%, and the Dow Jones Industrial Average leading with a 4.03% return. This period saw a shift in leadership towards large-cap value stocks as investor sentiment was influenced by the Federal Reserve's ongoing rate cuts amid cooling inflation and the maturation of AI investments. Against this backdrop, the Fund Institutional Class shares returned 1.97%, outperforming the S&P Global 1200 Information Technology Index’s 3.21% return. Heading into 2026, the U.S. economy appears to be steadily expanding, bolstered by strong demand and policy measures designed to promote sustained growth. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its fourth-quarter 2025 investor letter, Columbia Global Technology Growth Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a notable contributor. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading manufacturer of integrated circuits and other semiconductor devices. On March 26, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $326.11 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -12.94%, and its shares gained 97.34% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $1.691 billion.

Columbia Global Technology Growth Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its fourth quarter 2025 investor letter:

"Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) returned strong double digits during the quarter, as the world’s leading semiconductor foundry received overwhelming validation of insatiable AI chip demand from key customers including NVIDIA and Apple. The company reported bullish quarterly financial results and increased its forward growth expectations, as exponentially growing AI token consumption requires continuous capacity expansion. Of note, at the end of the quarter the company announced that production had begun for its next-generation two-nanometer technology. Shares of TSM returned over 50% during 2025."

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks 6th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 224 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the fourth quarter, up from 194 in the previous quarter. While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared the list of best AI stocks to buy for the next 10 years. In its Q4 2025 investor letter, Sustainable Growth Advisers, an investment management firm, attributed Taiwan Semiconductor Manufacturing Company Limited's (NYSE:TSM) rally to the same factors. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.