Principal Financial Group Inc. Has $664.61 Million Stake in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Principal Financial Group reduced its stake in Taiwan Semiconductor Manufacturing by 5.4% in the first quarter, though it still held 1,966,598 shares valued at about $664.6 million.
• TSMC reported record June revenue and beat second-quarter sales expectations, with AI-driven demand remaining a major growth driver. First-half revenue rose 35.6% year over year, and the company is expanding advanced chip packaging capacity in Taiwan.
• The stock continues to get strong Wall Street support, with analysts maintaining a consensus Buy rating and an average price target of $449.38; TSMC also recently raised its quarterly dividend to $1.1136 per share.

Principal Financial Group Inc. lowered its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 5.4% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,966,598 shares of the semiconductor company's stock after selling 112,656 shares during the quarter. Principal Financial Group Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $664,612,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in TSM. Quattro Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at approximately $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $27,000. Stephens Consulting LLC boosted its position in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after buying an additional 41 shares in the last quarter. Strategic Advocates LLC boosted its position in Taiwan Semiconductor Manufacturing by 62.1% in 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 in the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth $29,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC posted record June revenue and beat second-quarter sales expectations, signaling that AI-driven demand remains strong ahead of earnings. Reuters article
• Positive Sentiment: The company said June revenue jumped 67.9% year over year and first-half revenue rose 35.6%, reinforcing momentum in AI and advanced chip demand. CNBC article
• Positive Sentiment: TSMC is expanding its advanced chip packaging capacity in Taiwan, which supports longer-term growth and shows management is investing to meet strong demand. Reuters article
• Neutral Sentiment: Analysts are highlighting TSMC’s upcoming earnings release as a key test for whether AI-chip strength can keep driving the stock higher. Zacks article
• Neutral Sentiment: Broader market weakness and a selloff in memory-chip stocks are creating mixed sector sentiment, which may be tempering enthusiasm despite TSMC’s strong results. Yahoo Finance article
• Negative Sentiment: Some commentary suggests investors are questioning how long the AI spending boom can last, which could limit upside after the rally. Barron's article

Insider Buying and Selling

In related news, VP Bor-Zen Tien bought 2,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the transaction, the vice president directly owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president directly owned 2,495,165 shares in the company, valued at $174,237,371.95. The trade was a 7.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders purchased a total of 6,857 shares of company stock valued at $512,334 in the last three months. Insiders own 1.11% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the stock a "positive" rating in a report on Monday, June 22nd. DA Davidson reissued a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Needham & Company LLC boosted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Zacks Research cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Finally, Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and a consensus price target of $449.38.

Taiwan Semiconductor Manufacturing Trading Down 2.9%

TSM opened at $421.43 on Tuesday. 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 debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The firm has a market capitalization of $2.19 trillion, a price-to-earnings ratio of 35.06, a PEG ratio of 1.09 and a beta of 1.36. The company's 50 day moving average price is $426.65 and its two-hundred day moving average price is $375.34.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 15th. The semiconductor company reported $3.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.18. The firm had revenue of $35.49 billion during the quarter, compared to analysts' expectations of $35.47 billion. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company's revenue was up 40.6% on a year-over-year basis. During the same period in the prior year, the company posted $2.12 EPS. As a group, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.39 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be issued a $1.1136 dividend. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 24.71%.

Taiwan Semiconductor Manufacturing Company 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.