Encompass More Asset Management Sells 5,333 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Encompass More Asset Management reduced its TSMC position by 80.2% in the second quarter, selling 5,333 shares and retaining 1,320 shares valued at approximately $630,000.
• TSMC continues to benefit from strong AI demand, with July revenue up 44.7% year over year and management projecting more than 40% revenue growth in 2026. Insiders also bought 18,312 shares worth about $1.35 million over the past three months.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $524.25, though elevated valuation and concerns that the semiconductor cycle may be nearing a peak present risks.

Encompass More Asset Management cut its position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 80.2% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,320 shares of the semiconductor company's stock after selling 5,333 shares during the period. Encompass More Asset Management's holdings in Taiwan Semiconductor Manufacturing were worth $630,000 at the end of the most recent quarter.

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

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin acquired 1,000 shares of the stock in a transaction that occurred on Tuesday, July 21st. The stock was bought at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the purchase, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Lipen Yuan bought 1,000 shares of the business's stock in a transaction on Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the transaction, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This trade represents a 25.00% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 18,312 shares of company stock worth $1,347,058 over the last three months. 1.11% of the stock is owned by corporate insiders.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record revenue reinforces the AI growth story. TSMC’s July revenue reached NT$467.58 billion, an increase of 44.7% year over year. Management expects 2026 revenue growth of slightly more than 40% in U.S. dollar terms, suggesting demand for advanced chips remains robust. Taiwan Semiconductor's July Revenue Rose 45% and the Stock Sits 13% Below Its High
• Positive Sentiment: TSMC and Sony are forming a major Japan-based image-sensor venture. The companies plan to invest nearly $4.7 billion and combine Sony’s sensor expertise with TSMC manufacturing, with volume production targeted for 2029. The partnership broadens TSMC’s customer and geographic base while supporting next-generation smartphone components. TSMC Stock Rises 2.2% as $4.69 Billion Sony Venture Launches
• Positive Sentiment: Analysts and institutional investors remain constructive. Sanford C. Bernstein forecast strong price appreciation, Erste Group issued a fiscal 2027 earnings forecast, and Perseverance Asset Management International increased its TSMC stake. Another analysis rated TSMC a buy among major AI infrastructure companies. Sanford C. Bernstein Forecasts Strong Price Appreciation for Taiwan Semiconductor Manufacturing
• Neutral Sentiment: TSMC’s competitive moat remains a central investor focus. A comparison with ASML highlights TSMC’s importance in manufacturing the world’s most advanced chips, although investors are weighing whether its advantage is as durable as ASML’s equipment monopoly amid rising AI demand and geopolitical pressure. ASML vs. TSMC: Which Semiconductor Giant Has the Deeper Moat?
• Negative Sentiment: Cycle and valuation risks are becoming more prominent. Despite continued inflows into semiconductor and leveraged chip ETFs, Fidelity’s Jurrien Timmer warned that the semiconductor cycle could be approaching a peak. Analysts also caution that strong earnings may no longer be sufficient to drive hot chip stocks higher, particularly after TSMC’s substantial rally and elevated valuation. Semiconductor Flows Stay Sticky in Leveraged Chip ETFs

Analyst Ratings Changes

TSM has been the subject of a number of recent analyst reports. Barclays boosted their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, July 17th. DA Davidson increased their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Sanford C. Bernstein lifted their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Finally, TD Cowen upped their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Stock Performance

Taiwan Semiconductor Manufacturing stock opened at $430.66 on Friday. The company has a 50 day moving average price of $425.75 and a 200-day moving average price of $390.12. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.25 and a current ratio of 2.46. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $223.70 and a fifty-two week high of $479.00. The company has a market capitalization of $2.23 trillion, a PE ratio of 31.07, a P/E/G ratio of 0.98 and a beta of 1.38.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders 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 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 21.43%.

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.

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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