TSMC Stock Caps Keep Funds With $100 Billion From Cashing In

Insatiable demand for everything AI has driven up Taiwan Semiconductor Manufacturing Co.’s share price, but that’s put some fund managers at risk of underperforming due to restrictions on portfolio concentration.

Shares of TSMC — the world’s biggest contract chipmaker — have surged 36% in Taipei this year on the artificial intelligence boom. The rally has brought the stock’s weighting in key indexes to new heights.