Capital International Investors Raises Stock Holdings in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Capital International Investors slightly increased its TSMC stake in the fourth quarter, owning about 25.66 million shares worth roughly $7.79 billion. The position represents about 1.2% of the firm’s portfolio.
• TSMC’s stock has drawn continued attention from institutions and insiders, including a recent sale by VP Tzu-Sou Chuang and a smaller purchase by VP Bor-Zen Tien. Overall, hedge funds and other institutions own about 16.51% of the company.
• The company remains well regarded by Wall Street, with an average Buy rating and strong analyst price targets, while it also raised its quarterly dividend to $1.1136 per share. The stock has been supported by strong AI-related demand and growth expectations, even as some commentary flags supply constraints.

Capital International Investors increased its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 0.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 25,658,661 shares of the semiconductor company's stock after purchasing an additional 14,990 shares during the period. Taiwan Semiconductor Manufacturing accounts for 1.2% of Capital International Investors' portfolio, making the stock its 19th biggest position. Capital International Investors owned approximately 0.50% of Taiwan Semiconductor Manufacturing worth $7,790,435,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Stephens Consulting LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 41 shares during the last quarter. Ares Financial Consulting LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $29,000. Basepoint Wealth LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $31,000. Resources Management Corp CT ADV purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at $32,000. Finally, Maseco LLP purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at $35,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Bor-Zen Tien bought 2,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 3,346 shares of company stock valued at $218,005 in the last 90 days. 1.11% of the stock is currently owned by company insiders.

Taiwan Semiconductor Manufacturing Stock Down 6.6%

NYSE TSM opened at $415.62 on Friday. The stock's 50-day moving average price is $387.89 and its 200-day moving average price is $347.72. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. Taiwan Semiconductor Manufacturing Company Ltd. has a 52 week low of $203.23 and a 52 week high of $450.16. The company has a market capitalization of $2.16 trillion, a P/E ratio of 34.58, a price-to-earnings-growth ratio of 1.21 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The firm had revenue of $30.65 billion for the quarter. On average, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.29 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 24.71%.

Wall Street Analyst Weigh In

Several research firms recently commented on TSM. DA Davidson reaffirmed a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Barclays increased their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. Needham & Company LLC increased their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Finally, Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC is being praised as a top AI stock because rising demand, a stronger 2026 outlook, and ongoing capacity expansion support earnings growth. Why TSMC Is a Better AI Stock to Hold Right Now Than Broadcom
• Positive Sentiment: CEO C.C. Wei’s comments about robust AI demand and the possibility of higher chip prices reinforced the company’s long-term growth narrative. TSMC CEO Issues Stark AI Supply Warning -- Wedbush Sees Big Opportunity
• Positive Sentiment: Brokerage coverage remains favorable, with TSMC receiving an average “Buy” rating, underscoring Wall Street confidence in the stock. Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM Given Average Rating of "Buy" by Brokerages
• Positive Sentiment: Investors continue to focus on TSMC’s central role in the AI compute supply chain, which helps support the stock’s premium valuation. Taiwan Semiconductor Manufacturing (TSM) Sits at the Absolute Center of the AI Compute Supply Chain
• Neutral Sentiment: TSMC is attracting heavy investor attention, which reflects elevated interest but does not by itself change the fundamentals. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Shareholders approved 2025 results and charter changes at the annual meeting, a routine governance update with limited near-term stock impact. TSMC Shareholders Approve 2025 Results and Charter Changes at June 4 Meeting
• Negative Sentiment: Some traders are selling on warnings that AI chip supply shortages may persist for years, raising concerns about production bottlenecks, cost pressure, and the pace of revenue conversion. TSMC Stock Price Drops as CEO Warns Chip Supply Struggles to Meet AI Demand

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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