In its Q2 2026 investor letter, Baron Capital's Baron Fifth Avenue Growth Fund noted Taiwan Semiconductor Manufacturing Company (TSM) as a significant contributor to its performance. The fund stated that TSMC's shares rose 41.6% during the quarter, supported by stellar financial results, including 35% year-on-year revenue growth and 58% EPS growth. The company's high-performance computing segment now constitutes the majority of its business, fueled by robust AI demand. TSMC's management also raised its full-year outlook and increased capital spending to meet demand that continues to outpace available supply.