Handelsbanken Fonder AB Cuts Stake in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Handelsbanken Fonder AB cut its TSMC stake by 28.4% in the second quarter, selling 154,822 shares and retaining 389,578 shares valued at approximately $186.1 million.
• TSMC reported strong operating results, including $39.89 billion in quarterly revenue, $4.28 EPS, a 50.31% net margin and July sales growth of 44.7% year over year, supported by robust AI-chip demand.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $496.25, although the stock’s elevated valuation, potential U.S. export restrictions to China and already-priced-in AI growth pose risks.

Handelsbanken Fonder AB reduced its holdings in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 28.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 389,578 shares of the semiconductor company's stock after selling 154,822 shares during the period. Handelsbanken Fonder AB's holdings in Taiwan Semiconductor Manufacturing were worth $186,051,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in TSM. Twin City Private Wealth LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% in the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company's stock valued at $2,479,000 after purchasing an additional 25 shares in the last quarter. Graves Light Lenhart Wealth Inc. grew its holdings in shares of Taiwan Semiconductor Manufacturing by 3.4% during the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company's stock valued at $359,000 after purchasing an additional 25 shares during the last quarter. OFS Enterprise LLC raised its position in Taiwan Semiconductor Manufacturing by 4.0% in the 2nd quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company's stock worth $312,000 after purchasing an additional 25 shares during the period. Wealthcare Capital Partners LLC raised its position in Taiwan Semiconductor Manufacturing by 1.0% in the 2nd quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company's stock worth $1,244,000 after purchasing an additional 25 shares during the period. Finally, Financial Life Planners lifted its stake in Taiwan Semiconductor Manufacturing by 3.4% in the first quarter. Financial Life Planners now owns 786 shares of the semiconductor company's stock worth $266,000 after purchasing an additional 26 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE:TSM opened at $419.34 on Tuesday. The company has a market cap of $2.17 trillion, a price-to-earnings ratio of 30.26, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company has a 50-day moving average price of $426.67 and a 200-day moving average price of $388.05. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.13. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $223.70 and a 12 month high of $479.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The company had revenue of $39.89 billion for 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 anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current year.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: July revenue surged 44.7% year over year. TSMC reported approximately NT$467.58 billion ($14.5 billion) in July sales, up 5.6% from June. The result exceeded the company’s full-year growth outlook and reinforces expectations that demand for AI accelerators and advanced chips remains robust. World's biggest chipmaker TSMC's sales surge 45% amid buoyant AI demand
• Positive Sentiment: Microsoft’s planned Maia 300 expansion could create substantial future demand. Reports indicate Microsoft is seeking significantly greater TSMC capacity for its next-generation in-house AI chips, potentially exceeding 300,000 units and eventually reaching more than one million. Packaging and component availability remain constraints, but the program highlights TSMC’s role as a key supplier to hyperscalers. Microsoft plans Maia 300 chip reveal in September
• Positive Sentiment: TSMC and Sony are planning a roughly $6.3 billion image-sensor venture in Japan. The project, expected to begin commercial production as early as 2029, could diversify TSMC’s growth beyond computing into smartphone, automotive, robotics and physical-AI applications. Sony, TSMC to spend $6.3 billion jointly make image sensors
• Positive Sentiment: Strong TSMC sales also lifted sentiment toward semiconductor-equipment suppliers, signaling potential increases in wafer-fabrication investment as the company expands advanced capacity. Chip equipment stocks rise after Taiwan Semiconductor revenue surges 45%
• Neutral Sentiment: Multiple senior TSMC executives, including the CEO, COO and CFO, reported small open-market purchases. The buying may signal management confidence, but the transactions were modest relative to the company’s market capitalization.
• Negative Sentiment: Investors appear to have already priced in exceptional AI growth. Despite the record sales increase, TSM shares have struggled for direction, suggesting the strong report was largely anticipated. The stock also trades at a comparatively demanding valuation, increasing sensitivity to any slowdown.
• Negative Sentiment: U.S. lawmakers are urging tighter controls on advanced-chip shipments to Chinese customers. Additional compliance requirements or restrictions could limit some business opportunities and increase geopolitical risk for TSMC. Key Republican urges US to stop advanced chips reaching sanctioned Chinese firms

Analysts Set New Price Targets

TSM has been the topic of a number of recent research reports. Barclays raised their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Susquehanna boosted their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research note 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. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Finally, TD Cowen lifted their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $496.25.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the purchase, the vice president owned 5,000 shares of the company's stock, valued at approximately $395,950. This represents a 25.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Shyue-Shyh Lin bought 2,000 shares of the firm's stock in a transaction that occurred on Sunday, July 19th. The shares were acquired at an average price of $71.71 per share, with a total value of $143,420.00. Following the acquisition, the vice president owned 28,269 shares of the company's stock, valued at $2,027,169.99. This represents a 7.61% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 18,312 shares of company stock worth $1,347,058. 1.11% of the stock is currently owned by company insiders.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source