TSMC’s 42% Stock Surge Leads to Weighting Limits for Some Funds
- Some industry standards cap single stock exposure to 10%: BNP
- Active managers looking at different stocks within sector
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The runaway success of Taiwan Semiconductor Manufacturing Co’s shares may hit a roadblock, as some investors face holding limits and have to search for the next big name in artificial intelligence.
The stock has soared 42% in Taipei this year as its dominance in making advanced chips for AI has made it a favorite among money managers. But, funds governed by restrictions on single stocks can’t add more TSMC equity, and may even have to sell due to the outsized gains.