Giverny Capital Inc. Sells 4,470 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Giverny Capital cut its TSMC stake by 55% in the second quarter, selling 4,470 shares and retaining 3,655 shares valued at approximately $1.75 million.
• TSMC reported quarterly revenue of $39.89 billion, earnings per share of $4.28, and a 50.31% net margin. The company also declared a quarterly dividend of $1.0854, equivalent to a 1.0% annualized yield.
• Analyst sentiment remains positive, with a consensus “Buy” rating and a $523.22 price target, though valuation concerns and substantial planned investments in Arizona and Europe create execution and capital-spending risks.

Giverny Capital Inc. reduced its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 55.0% during the second quarter, according to its most recent filing with the SEC. The fund owned 3,655 shares of the semiconductor company's stock after selling 4,470 shares during the quarter. Giverny Capital Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $1,746,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the stock. HORAN Wealth LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth about $228,000. Schulz Wealth LTD. bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter worth about $1,063,000. Advus Financial Partners LLC boosted its stake in Taiwan Semiconductor Manufacturing by 3.3% in the second quarter. Advus Financial Partners LLC now owns 792 shares of the semiconductor company's stock valued at $378,000 after acquiring an additional 25 shares during the last quarter. Kingsbury Capital Investment Advisors LLC boosted its stake in Taiwan Semiconductor Manufacturing by 3.9% in the second quarter. Kingsbury Capital Investment Advisors LLC now owns 1,315 shares of the semiconductor company's stock valued at $628,000 after acquiring an additional 49 shares during the last quarter. Finally, Carlson Financial Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 6.0% during the 2nd quarter. Carlson Financial Inc. now owns 1,631 shares of the semiconductor company's stock valued at $780,000 after acquiring an additional 93 shares during the period. Institutional investors own 16.51% of the company's stock.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is developing a three-hectare laboratory aimed at speeding supplier validation and addressing its advanced-packaging bottleneck. Because the facility is intended to improve production efficiency rather than add another multibillion-dollar fab, investors may view it as a relatively capital-efficient way to support growing AI-chip demand. TSMC Jumps as a Three-Hectare Lab Attacks Its Packaging Bottleneck
• Positive Sentiment: Goldman Sachs says the AI spending cycle may still be in its early stages, supporting the outlook for TSMC’s leading-edge manufacturing and packaging businesses. Goldman Sachs Says the AI Trade Is Barely Started
• Positive Sentiment: Citi identified TSMC as a stock to watch if Apple’s next premium iPhones, including a potential foldable model, command higher prices. More expensive devices could support Apple’s component spending and TSMC’s high-end chip demand. Apple’s New Foldable iPhone Could Cost $2,000
• Positive Sentiment: Coverage points to rising demand for specialized cleaning chemicals and other materials required by advanced AI-chip fabs, reinforcing the view that TSMC’s strong margins are supported by a broad semiconductor supply chain. TSMC's 67.7% Margin Now Needs Twice the Cleaning Chemistry
• Positive Sentiment: Analyst commentary describes TSMC as a “picks-and-shovels” beneficiary of the AI buildout and argues that its customer diversification and manufacturing position may make it more attractive than many major technology stocks. TSMC Is a Better Buy Than Any of the Magnificent Seven Stocks
• Neutral Sentiment: Senior Vice President Shu-Hua Fang disclosed a purchase of 2,000 shares, increasing personal ownership by 32.23%. The insider buying is supportive sentiment, though the transaction was disclosed well after the purchase and is small relative to TSMC’s market value. SEC insider trading filing
• Negative Sentiment: One valuation analysis estimates TSMC may be about 9% above fair value, while its planned investments in Arizona and Europe increase capital requirements. Investors may therefore remain sensitive to execution risks, returns on new capacity, and any slowdown in AI spending. TSMC Could Be 9% Above Fair Value As Capex Plans Grow

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM stock opened at $429.07 on Monday. The firm's 50 day moving average is $420.63 and its 200 day moving average is $398.18. The stock has a market capitalization of $2.23 trillion, a P/E ratio of 30.96, a PEG ratio of 0.98 and a beta of 1.39. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $237.90 and a 12 month high of $479.00. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The business had revenue of $39.89 billion during the quarter. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.52 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be given a $1.0854 dividend. 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 payout ratio is 21.43%.

Insider Buying and Selling

In related news, VP Bor-Zen Tien acquired 3,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 21st. The shares were bought 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 in the company, valued at $297,560. This trade represents a 300.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Shyue-Shyh Lin acquired 2,000 shares of the company's stock in a transaction that occurred on Sunday, July 19th. The shares were bought at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the acquisition, the vice president directly owned 28,269 shares in the company, valued at $2,027,169.99. This represents a 7.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 19,512 shares of company stock valued at $1,450,270 in the last ninety days. 1.11% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC raised their price target on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a "buy" rating in a research note on Monday, July 27th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 26th. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a "buy" rating and a $515.00 price objective for the company. Sanford C. Bernstein raised 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, August 11th. Finally, Susquehanna raised their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday, July 16th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and a consensus price target of $523.22.

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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