Capital World Investors Sells 336,591 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Capital World Investors trimmed its Taiwan Semiconductor Manufacturing stake by 1.2% in the fourth quarter, selling 336,591 shares. It still held 27.4 million shares worth about $8.33 billion, making TSM its 14th-largest holding.
• Wall Street sentiment remains constructive, with TSM receiving an average “Buy” rating and a consensus price target of $404.29. Recent analyst actions included upgrades from Wall Street Zen and Weiss Ratings, plus Barclays raising its target to $470.
• TSMC reported strong results and returned more cash to shareholders, posting quarterly EPS of $3.11 on revenue of $30.65 billion and increasing its quarterly dividend to $1.1136 per share. The new dividend implies a 1.1% yield and reflects a higher payout than the prior $0.95 quarterly dividend.

Capital World Investors reduced its holdings in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 1.2% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 27,404,289 shares of the semiconductor company's stock after selling 336,591 shares during the quarter. Taiwan Semiconductor Manufacturing makes up about 1.1% of Capital World Investors' portfolio, making the stock its 14th biggest holding. Capital World Investors owned 0.53% of Taiwan Semiconductor Manufacturing worth $8,327,059,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Capital Research Global Investors boosted its stake in shares of Taiwan Semiconductor Manufacturing by 66.3% during the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock worth $976,821,000 after acquiring an additional 1,281,648 shares during the period. Capital International Sarl boosted its stake in shares of Taiwan Semiconductor Manufacturing by 1.3% during the 4th quarter. Capital International Sarl now owns 156,291 shares of the semiconductor company's stock worth $47,495,000 after acquiring an additional 2,056 shares during the period. Tradition Wealth Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 7.7% during the 4th quarter. Tradition Wealth Management LLC now owns 4,983 shares of the semiconductor company's stock worth $1,514,000 after acquiring an additional 356 shares during the period. Valtrion Capital Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 11.4% during the 4th quarter. Valtrion Capital Management LLC now owns 1,212 shares of the semiconductor company's stock worth $368,000 after acquiring an additional 124 shares during the period. Finally, Comprehensive Financial Planning Inc. PA boosted its stake in shares of Taiwan Semiconductor Manufacturing by 17.8% during the 4th quarter. Comprehensive Financial Planning Inc. PA now owns 661 shares of the semiconductor company's stock worth $201,000 after acquiring an additional 100 shares during the period. 16.51% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on TSM shares. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th. Finally, Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

TSM opened at $415.62 on Friday. The business has a fifty day simple moving average of $387.89 and a 200 day simple moving average of $347.72. The company has a market capitalization of $2.16 trillion, a PE ratio of 34.58, a price-to-earnings-growth ratio of 1.21 and a beta of 1.38. Taiwan Semiconductor Manufacturing Company Ltd. has a 1 year low of $203.23 and a 1 year high of $450.16. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. The ex-dividend date of this dividend 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 payout ratio is presently 24.71%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien acquired 2,000 shares of the company's stock in a transaction on Tuesday, May 19th. The stock was purchased at an average cost of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares of the company's stock, valued at approximately $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, May 19th. The shares were 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 directly owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders acquired a total of 3,346 shares of company stock valued at $218,005 over the last ninety days. Insiders own 1.11% of the company's stock.

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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