Sustainable Growth Advisers LP Sells 148,028 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Sustainable Growth Advisers LP cut its Taiwan Semiconductor Manufacturing position by 52.6% in the fourth quarter, selling 148,028 shares and leaving it with 133,526 shares valued at about $40.6 million.
• TSMC shares were up 4.2% in Tuesday trading, and the company’s market value has reached about $2.26 trillion. The stock has also traded near its 12-month high, reflecting strong investor demand.
• The company recently raised its quarterly dividend to $1.1136 per share from $0.95, while analysts remain broadly positive with a consensus rating of Buy and an average price target of $404.29.

Sustainable Growth Advisers LP cut its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 52.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 133,526 shares of the semiconductor company's stock after selling 148,028 shares during the period. Sustainable Growth Advisers LP's holdings in Taiwan Semiconductor Manufacturing were worth $40,577,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Stephens Consulting LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 41 shares during the period. Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $29,000. Basepoint Wealth LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $31,000. Maseco LLP bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $35,000. Finally, Westend Capital Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 476.2% in the 4th quarter. Westend Capital Management LLC now owns 121 shares of the semiconductor company's stock valued at $37,000 after purchasing an additional 100 shares during the period. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Trading Up 4.2%

Shares of Taiwan Semiconductor Manufacturing stock opened at $436.00 on Tuesday. The stock has a market capitalization of $2.26 trillion, a P/E ratio of 36.27, a price-to-earnings-growth ratio of 1.22 and a beta of 1.39. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The company has a 50-day simple moving average of $380.19 and a 200 day simple moving average of $343.92. Taiwan Semiconductor Manufacturing Company Ltd. has a 12-month low of $192.20 and a 12-month high of $449.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, September 16th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio is 25.04%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on TSM shares. Barclays raised their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Finally, Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $404.29.

Insider Activity

In related news, VP Bor-Zen Tien acquired 2,000 shares of the stock in a transaction on Tuesday, May 19th. The stock was purchased at an average price of $69.91 per share, for a total transaction of $139,820.00. Following the transaction, the vice president owned 11,051 shares of the company's stock, valued at $772,575.41. The trade was a 22.10% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders acquired a total of 3,346 shares of company stock valued at $218,005 in the last 90 days. Corporate insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Analysts and market commentary say TSMC stands to benefit whether hyperscalers stick with Nvidia GPUs or shift toward custom AI chips, because either path still requires TSMC’s foundry capacity. Hyperscalers Are Trying To Replace Nvidia's GPUs - TSMC Gets The Upside Either Way
• Positive Sentiment: Reports that TSMC may raise prices for 3nm chips suggest demand remains strong and supply remains tight, which is typically supportive for revenue and margins. TSMC's Price Hike Is Bad For Nvidia Margins — And Potentially Great For Nvidia Stock
• Positive Sentiment: NVIDIA disclosed that TSMC is expanding use of NVIDIA AI technologies across chip production operations, highlighting a deeper partnership and more AI-driven manufacturing activity. TSMC Expands Use of NVIDIA AI Technologies Across Chip Production Operations
• Positive Sentiment: Broader AI spending headlines continue to point to TSMC as a major beneficiary of semiconductor demand tied to Nvidia’s next-generation rollout and big-tech capex plans. Nvidia Says Big Tech Will Spend $1 Trillion in Capital Expenditures in 2027: 3 Stocks to Buy If It's Right
• Neutral Sentiment: Some coverage says TSMC shares may be overvalued after the recent rally, which could temper enthusiasm even as fundamentals remain strong. Is Taiwan Semiconductor Manufacturing Co Ltd (TSM) Overvalued After 4.1% Rally? GF Value Says Overvalued
• Neutral Sentiment: TSMC’s ADR premium fell to a two-year low as Taiwan-listed shares outperformed U.S.-listed ADRs, which is more of a market-structure note than a direct business concern. TSMC ADR Premium Falls To Two-Year Low As Taipei Shares Surge
• Negative Sentiment: One bearish investor update from Leopold Aschenbrenner and commentary about TSMC reducing its stake in Vanguard International Semiconductor may weigh on sentiment, though these items appear less important than the AI demand narrative. Taiwan Semiconductor Manufacturing (TSM): Leopold Aschenbrenner Takes Bearish View

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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