Central Pacific Bank Trust Division Purchases 2,336 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Central Pacific Bank Trust Division increased its TSMC position by 31.2% in the third quarter, purchasing 2,336 additional shares and bringing its holdings to 9,815 shares valued at approximately $4.48 million. Other institutional investors also raised their stakes, with institutions owning 16.51% of the company.
• Analysts remain broadly bullish on TSMC, with an average “Buy” rating and a consensus price target of $523.22. Recent catalysts include strong AI-chip demand, expected earnings growth and potential discussions with Elon Musk about a Texas “Terafab” facility.
• TSMC shares were trading near their 52-week high, supported by strong profitability and a 50.31% net margin, but investors face risks from margin pressure as the company ramps 2-nanometer production and expands overseas factories. The company also reduced its quarterly dividend to $1.0854 per share, yielding about 0.9%.

Central Pacific Bank Trust Division raised its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 31.2% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 9,815 shares of the semiconductor company's stock after acquiring an additional 2,336 shares during the period. Central Pacific Bank Trust Division's holdings in Taiwan Semiconductor Manufacturing were worth $4,478,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of TSM. Brookstone Capital Management boosted its stake in shares of Taiwan Semiconductor Manufacturing by 87.3% in the 2nd quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company's stock valued at $12,008,000 after purchasing an additional 11,719 shares in the last quarter. Y Intercept Hong Kong Ltd increased its position in shares of Taiwan Semiconductor Manufacturing by 273.2% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company's stock worth $27,438,000 after purchasing an additional 59,435 shares in the last quarter. Opal Capital LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 72.5% during the 1st quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company's stock valued at $9,384,000 after purchasing an additional 11,666 shares during the last quarter. Western Wealth Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 27.4% during the 1st quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company's stock valued at $9,447,000 after purchasing an additional 6,013 shares during the last quarter. Finally, Elevation Point Wealth Partners LLC boosted its position in Taiwan Semiconductor Manufacturing by 306.7% in the first quarter. Elevation Point Wealth Partners LLC now owns 52,397 shares of the semiconductor company's stock valued at $17,728,000 after buying an additional 39,514 shares in the last quarter. Institutional investors own 16.51% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on TSM. Barclays raised their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Stifel Nicolaus assumed coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They issued a "buy" rating and a $515.00 target price on the stock. Sanford C. Bernstein increased their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Zacks Research raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Finally, Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 22nd. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $523.22.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Elon Musk confirmed early discussions with TSMC regarding “Terafab,” a proposed Texas chip-manufacturing venture intended to serve Tesla, SpaceX and xAI. Although no agreement has been announced, investors view the talks as a potential source of long-term demand and a validation of TSMC’s manufacturing expertise. Musk confirms talks with TSMC over Terafab chip plant
• Positive Sentiment: TSMC’s shares broke to a new 52-week high after the Terafab news, reinforcing bullish momentum in the stock and highlighting investor enthusiasm for additional U.S. manufacturing opportunities. Taiwan Semiconductor gains to record as Musk confirms Terafab talks
• Positive Sentiment: Investors expect strong revenue growth in the October 15 earnings release, supported by record monthly sales and sustained demand for advanced chips used in artificial intelligence. The launch of 2-nanometer production is viewed as an important future growth catalyst. TSMC is set up for a big October 15
• Neutral Sentiment: Analysts and investors continue to view TSMC as a key supplier to Nvidia, Apple and the broader AI industry. However, its growth rate may be slower than some AI-focused peers, making the upcoming earnings outlook and guidance especially important. Is Taiwan Semiconductor the best AI stock to buy now?
• Negative Sentiment: The key risk ahead of earnings is margin pressure. Ramping 2nm production and expanding overseas factories could initially carry higher costs and lower margins, challenging the premium valuation investors have placed on TSMC. How much overseas factory cost can TSMC’s valuation absorb?

Taiwan Semiconductor Manufacturing Stock Performance

Shares of Taiwan Semiconductor Manufacturing stock opened at $486.04 on Tuesday. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The firm has a 50 day simple moving average of $427.31 and a 200 day simple moving average of $410.67. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $266.82 and a fifty-two week high of $487.47. The firm has a market cap of $2.52 trillion, a P/E ratio of 35.07, a P/E/G ratio of 1.05 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. Sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, December 10th. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 24.75%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 3,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, July 21st. The shares were purchased at an average cost of $74.39 per share, with a total value of $223,170.00. Following the completion of the purchase, the vice president owned 4,000 shares in the company, valued at $297,560. The trade was a 300.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Shyue-Shyh Lin bought 2,000 shares of the stock in a transaction on Sunday, July 19th. The shares were acquired 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 in the company, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have acquired 14,559 shares of company stock valued at $1,067,931. 1.11% of the stock is currently owned by insiders.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world's largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.

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