Addenda Capital Inc. Trims Stock Holdings in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Addenda Capital cut its TSMC position by 42.1% in the second quarter, selling 16,105 shares and retaining 22,125 shares valued at approximately $10.6 million.
• Institutional ownership was mixed: several funds increased their stakes or initiated positions, while SoftBank reportedly sold most of its TSMC holdings, creating a potential near-term sentiment overhang.
• TSMC continues to benefit from strong AI-related demand and reported $39.89 billion in quarterly revenue with a 50.31% net margin. Analysts maintain a consensus “Buy” rating with an average price target of $524.25, although some investors caution that semiconductor valuations may be near a peak.

Addenda Capital Inc. decreased its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 42.1% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 22,125 shares of the semiconductor company's stock after selling 16,105 shares during the quarter. Addenda Capital Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $10,583,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Brighton Jones LLC boosted its stake in Taiwan Semiconductor Manufacturing by 20.9% during the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock worth $2,159,000 after acquiring an additional 1,892 shares in the last quarter. Gamco Investors INC. ET AL bought a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $701,000. Bank of Nova Scotia increased its stake in shares of Taiwan Semiconductor Manufacturing by 12.8% during the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock valued at $3,556,000 after purchasing an additional 1,784 shares in the last quarter. FWL Investment Management LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 26.5% during the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after purchasing an additional 53 shares during the last quarter. Finally, Main Street Financial Solutions LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $270,000. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing News Summary

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: TSMC remains a key beneficiary of the AI boom. Nvidia is reportedly accelerating development of its next-generation Feynman platform, which could increase demand for TSMC’s 2-nanometer chips and advanced packaging capacity. Nvidia’s Next-Gen Feynman AI Platform Is Ramping Up
• Positive Sentiment: TSMC and Sony committed $4.69 billion to a new CMOS image-sensor plant in Kumamoto, Japan, with production targeted for 2029 and support from Japanese government subsidies. The project could broaden TSMC’s geographic footprint and strengthen its relationship with a major customer. Sony and TSMC’s $4.7 Billion Venture
• Positive Sentiment: Several institutional investors expressed confidence in TSMC: Causeway Capital increased its position, while Perseverance Asset Management International also raised its stake. Analysts including Sanford C. Bernstein continue to forecast meaningful appreciation. Causeway Capital Boosts TSMC Stake
• Neutral Sentiment: TSMC filed reviewed interim financial statements with the SEC. The filing provides updated regulatory disclosure but, based on the available report, does not identify a material change to the company’s outlook. TSMC Files Reviewed Interim Financials
• Negative Sentiment: SoftBank disclosed that it sold 71.5% of its TSMC holdings during the second quarter. Although the sale may reflect portfolio management rather than a change in fundamentals, it creates near-term overhang and may weigh on sentiment. SoftBank Sells Most of Its Taiwan Semiconductor Holdings
• Negative Sentiment: Investors are increasingly concerned that strong earnings may already be reflected in chip valuations, while Fidelity has warned that the semiconductor cycle could be nearing a peak. Those concerns are particularly relevant for TSMC, whose valuation and recent gains leave the stock vulnerable to profit-taking. Analyst Sees Trouble Brewing for Hot Chip Stocks

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan purchased 1,000 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This represents a 25.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Shyue-Shyh Lin acquired 2,000 shares of the business's stock in a transaction that occurred on Sunday, July 19th. The stock was purchased at an average cost of $71.71 per share, with a total value of $143,420.00. Following the acquisition, the vice president directly owned 28,269 shares of the company's stock, valued at $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 18,312 shares of company stock valued at $1,347,058 over the last 90 days. 1.11% of the stock is owned by corporate insiders.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE TSM opened at $426.67 on Friday. The firm's 50-day moving average price is $425.97 and its 200-day moving average price is $390.38. Taiwan Semiconductor Manufacturing Company Ltd. has a 52-week low of $223.70 and a 52-week high of $479.00. The company has a market cap of $2.21 trillion, a PE ratio of 30.78, a PEG ratio of 0.99 and a beta of 1.38. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.13.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The firm had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.37%. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing's payout ratio is currently 21.43%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on TSM. Bank of America boosted their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. TD Cowen lifted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research note on Friday, July 17th. Susquehanna lifted their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research note on Thursday, July 16th. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Finally, Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has a consensus rating of "Buy" and an average price target of $524.25.

Taiwan Semiconductor Manufacturing Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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