Taiwan Semiconductor Manufacturing Company Ltd. $TSM Holdings Cut by GK Wealth Management LLC

Key Points

• GK Wealth Management reduced its TSMC position by 26.8% in the third quarter, selling 1,880 shares and retaining 5,135 shares valued at approximately $2.34 million.
• Other institutional investors increased their holdings, and hedge funds and institutional investors collectively own 16.51% of TSMC’s stock.
• Analysts maintain a broadly positive outlook, with a consensus “Buy” rating and an average price target of $524.89, while TSMC reported strong profitability but lowered its quarterly dividend to $1.0854 per share.

GK Wealth Management LLC decreased its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 26.8% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 5,135 shares of the semiconductor company's stock after selling 1,880 shares during the period. Taiwan Semiconductor Manufacturing comprises approximately 1.3% of GK Wealth Management LLC's investment portfolio, making the stock its 16th biggest holding. GK Wealth Management LLC's holdings in Taiwan Semiconductor Manufacturing were worth $2,343,000 as of its most recent SEC filing.

Other hedge funds also recently bought and sold shares of the company. Balefire LLC boosted its position in Taiwan Semiconductor Manufacturing by 8.4% during the 3rd quarter. Balefire LLC now owns 3,591 shares of the semiconductor company's stock valued at $1,638,000 after acquiring an additional 279 shares in the last quarter. Wedmont Private Capital raised its position in shares of Taiwan Semiconductor Manufacturing by 51.2% in the 3rd quarter. Wedmont Private Capital now owns 12,008 shares of the semiconductor company's stock worth $5,500,000 after acquiring an additional 4,067 shares in the last quarter. Athena Wealth Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 3.1% in the 3rd quarter. Athena Wealth Management LLC now owns 6,067 shares of the semiconductor company's stock worth $2,768,000 after acquiring an additional 180 shares in the last quarter. WoodTrust Financial Corp raised its position in shares of Taiwan Semiconductor Manufacturing by 11.7% in the 3rd quarter. WoodTrust Financial Corp now owns 1,436 shares of the semiconductor company's stock worth $655,000 after acquiring an additional 150 shares in the last quarter. Finally, Breakwater Capital Group lifted its stake in shares of Taiwan Semiconductor Manufacturing by 1.2% during the 3rd quarter. Breakwater Capital Group now owns 2,145 shares of the semiconductor company's stock worth $979,000 after purchasing an additional 25 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on TSM shares. TD Cowen raised their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research report on Friday, July 17th. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Stifel Nicolaus initiated coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a "buy" rating and a $515.00 price objective on the stock. Finally, DA Davidson boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing Stock Down 1.1%

NYSE:TSM traded down $5.12 during mid-day trading on Friday, hitting $452.87. 9,222,721 shares of the company's stock traded hands, compared to its average volume of 13,067,268. The company has a fifty day moving average of $433.13 and a 200 day moving average of $413.81. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $266.82 and a twelve month high of $487.47. The company has a market capitalization of $2.35 trillion, a P/E ratio of 32.67, a P/E/G ratio of 1.05 and a beta of 1.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's payout ratio is 24.75%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Shyue-Shyh Lin bought 2,000 shares of the stock in a transaction that occurred on Sunday, July 19th. The stock was bought at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the purchase, the vice president directly owned 28,269 shares of the company's stock, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were bought at an average cost of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president owned 6,000 shares in the company, valued at $447,000. The trade was a 20.00% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 16,043 shares of company stock valued at $1,185,746 in the last three months. 1.11% of the stock is owned by insiders.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record AI demand: TSMC reported third-quarter revenue of NT$1.49 trillion, or approximately $46.7 billion, up 50% year over year and ahead of analyst expectations. September sales increased 54.6% year over year, reinforcing strong demand for advanced chips used in artificial intelligence and high-performance computing. TSMC's third-quarter revenue surges to record, beating market forecast
• Positive Sentiment: More advanced-packaging capacity: TSMC agreed to a multiyear, $2 billion manufacturing arrangement with GlobalFoundries to produce U.S.-made silicon interposers for TSMC’s CoWoS advanced-packaging ecosystem. The deal supports future AI capacity, although volume production is not expected to ramp until 2028. GlobalFoundries Lands $2 Billion TSMC Deal to Expand US AI Chip Packaging
• Positive Sentiment: Supportive industry outlook: Analysts and market commentators continue to identify semiconductors as a leading October sector, while strong results from TSMC and Samsung suggest AI infrastructure spending remains intact. TSMC’s earnings report next week could provide additional guidance on demand, margins and capital expenditures. Record Profits at Samsung and TSMC Say the AI Trade is Intact
• Neutral Sentiment: TSMC CEO Che-Chia Wei and other executives reported modest open-market purchases. The buying may indicate management confidence, but the transactions are small relative to the company’s market capitalization. TSMC Insider Buying and Selling
• Negative Sentiment: Valuation and profit-taking: Despite record revenue and approximately 77% year-over-year profit growth in the latest reported quarter, investors are questioning whether the AI gains are already reflected in TSM’s premium valuation. The stock is trading near its 52-week high, increasing sensitivity to earnings expectations.
• Negative Sentiment: Macro and geopolitical risks: Rising Treasury yields and oil prices have pressured technology stocks broadly. Taiwan-related geopolitical concerns and uncertainty surrounding a potential Musk-linked Terafab project are additional risks, particularly because TSMC’s exact role remains unclear.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world's largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.

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