Dearborn Partners LLC Takes Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Dearborn Partners acquired a new TSMC position of 2,521 shares valued at approximately $1.2 million during the second quarter. Institutional investors collectively own 16.51% of the company.
• TSMC reported quarterly revenue of $39.89 billion and earnings of $4.28 per share, with a 50.31% net margin and 39.25% return on equity. The stock recently traded at $427.95, up 2.5%.
• Analysts maintain a consensus “Buy” rating with a $524.25 price target, supported by strong AI-chip demand and expanding advanced-node business, though expectations leave the stock vulnerable to disappointing guidance from major customers.

Dearborn Partners LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 2,521 shares of the semiconductor company's stock, valued at approximately $1,204,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Quattro Advisors LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth $27,000. Strategic Advocates LLC lifted its position in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 36 shares in the last quarter. Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $29,000. Finally, Basepoint Wealth LLC acquired a new position in Taiwan Semiconductor Manufacturing in the 4th quarter worth $31,000. 16.51% of the stock is currently owned by institutional investors.

Taiwan Semiconductor Manufacturing Stock Up 2.5%

NYSE:TSM opened at $427.95 on Friday. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $225.63 and a twelve month high of $479.00. The firm has a market capitalization of $2.22 trillion, a price-to-earnings ratio of 30.88, a price-to-earnings-growth ratio of 0.96 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 0.14. The stock's 50 day moving average price is $423.88 and its two-hundred day moving average price is $395.94.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The company had revenue of $39.89 billion during the quarter. Equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a $1.0854 dividend. 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 dividend payout ratio (DPR) is currently 21.43%.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC is reportedly set to manufacture Xiaomi’s Xring O3 processor using its leading 3-nanometer process. The order expands TSMC’s exposure to AI-enabled smartphones, consumer devices and autonomous-driving applications, while demonstrating that demand for advanced nodes is broadening beyond its largest established customers. Why Is Taiwan Semiconductor Manufacturing (TSM) Winning More 3nm AI Chip Work?
• Positive Sentiment: TSMC’s July revenue reportedly jumped 44.7% year over year, reinforcing expectations for powerful AI-related demand and increasing pressure on Nvidia and other major customers to support strong growth forecasts. TSMC's July Surge Raises the Bar for Nvidia's Foundry
• Positive Sentiment: A hedge fund’s decision to sell Sandisk and buy TSMC provides an additional signal of institutional confidence in TSMC’s long-term positioning, although it does not necessarily represent broad Wall Street consensus. This Hedge Fund Just Sold Sandisk and Bought Taiwan Semiconductor Manufacturing Stock. Does Wall Street Agree With the Move?
• Positive Sentiment: TSMC and Sony are investing $4.7 billion in a joint venture to develop and manufacture next-generation smartphone image sensors, with mass production expected in 2029. The project could diversify TSMC’s growth beyond processors and deepen its strategic relationship with Sony. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the “Eyes” of AI Machines
• Neutral Sentiment: Commentary remains bullish on TSMC as a central supplier to the AI industry and highlights potential for further appreciation through 2027. However, these price projections depend on sustained AI demand, successful capacity expansion and continued execution, rather than new company guidance. Price Prediction: TSM Will Trade at This Price in 2027
• Negative Sentiment: TSMC’s strong sales have raised the bar for upcoming industry and customer updates. If Nvidia or other major AI customers provide conservative guidance, investors could view that as a near-term risk despite TSMC’s current momentum. TSMC Jumps Before Nvidia Tests Its Capacity Bet

Analyst Ratings Changes

A number of research firms have issued reports on TSM. Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a report on Thursday, July 16th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. TD Cowen lifted their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research report on Friday, July 17th. Finally, Weiss Ratings cut Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, August 12th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $524.25.

Insider Activity

In other news, VP Bor-Zen Tien bought 3,000 shares of the business's stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average cost of $74.39 per share, for a total transaction of $223,170.00. Following the purchase, the vice president owned 4,000 shares of the company's stock, valued at approximately $297,560. This trade represents a 300.00% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Lipen Yuan bought 1,000 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, with a total value of $74,500.00. Following the completion of the purchase, the vice president directly owned 6,000 shares in the company, valued at $447,000. The trade was a 20.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 17,662 shares of company stock valued at $1,307,491 in the last quarter. Company 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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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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