Taiwan Semiconductor Manufacturing Company Ltd. $TSM is ARGA Investment Management LP's 5th Largest Position

Key Points

• ARGA Investment Management trimmed its Taiwan Semiconductor Manufacturing stake by 6.9% in the first quarter, but TSM still ranks as its 5th largest holding and represents about 6.9% of the portfolio.
• TSMC beat quarterly expectations, reporting $3.49 EPS versus $3.31 expected and revenue of $35.49 billion, up 40.6% year over year. The company also posted strong profitability with a 46.97% net margin.
• The company raised its dividend to $1.1136 per share quarterly, up from $0.95, bringing the annualized payout to $4.45 and a 1.0% yield. Meanwhile, analysts remain broadly positive, with a consensus rating of “Buy” and an average target price of $449.38.

ARGA Investment Management LP lessened its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 6.9% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 621,655 shares of the semiconductor company's stock after selling 46,366 shares during the quarter. Taiwan Semiconductor Manufacturing accounts for about 6.9% of ARGA Investment Management LP's portfolio, making the stock its 5th largest holding. ARGA Investment Management LP's holdings in Taiwan Semiconductor Manufacturing were worth $210,088,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Fisher Asset Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company's stock worth $5,514,662,000 after buying an additional 313,773 shares in the last quarter. Van ECK Associates Corp raised its position in shares of Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares during the period. Bank of America Corp DE raised its position in shares of Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company's stock worth $4,832,708,000 after acquiring an additional 966,926 shares during the period. Jennison Associates LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 6.4% during the 4th quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company's stock worth $4,070,393,000 after acquiring an additional 802,757 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 2.2% during the 3rd quarter. Alliancebernstein L.P. now owns 10,687,037 shares of the semiconductor company's stock worth $2,984,783,000 after acquiring an additional 229,237 shares in the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Trading Down 0.5%

Shares of Taiwan Semiconductor Manufacturing stock opened at $434.64 on Friday. The firm has a market capitalization of $2.25 trillion, a PE ratio of 36.16, a P/E/G ratio of 1.10 and a beta of 1.36. Taiwan Semiconductor Manufacturing Company Ltd. has a twelve month low of $223.70 and a twelve month high of $479.00. The firm's 50-day moving average price is $426.14 and its 200 day moving average price is $373.89. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 15th. The semiconductor company reported $3.49 EPS for the quarter, topping the consensus estimate of $3.31 by $0.18. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The company had revenue of $35.49 billion during the quarter, compared to analyst estimates of $35.47 billion. During the same period in the previous year, the business earned $2.12 EPS. Taiwan Semiconductor Manufacturing's quarterly revenue was up 40.6% on a year-over-year basis. On average, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.39 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 24.71%.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Multiple company insiders, including CEO Che-Chia Wei and several senior executives, bought TSM shares this week. Investors often view broad insider buying as a signal of management confidence in the company’s outlook and valuation. CEO insider purchase filing
• Positive Sentiment: TSMC remains a dominant foundry, with about 73% global market share and deep exposure to AI leaders such as Nvidia, AMD, and Broadcom, reinforcing the view that it remains a core beneficiary of AI infrastructure spending. Article on TSMC market share and competitors
• Positive Sentiment: Commentary around TSMC’s photonics roadmap and its central role in the AI buildout is keeping investors focused on long-term growth catalysts, especially if the company can ease future chip bottlenecks. TSMC photonic ramp article
• Neutral Sentiment: TSMC is drawing heavy attention ahead of next week’s earnings report, with several bullish articles suggesting results could be a catalyst, but investors are still waiting for actual guidance and margins to confirm the next move. Prediction: TSMC Stock Is Going to Soar After July 16
• Negative Sentiment: Reports that Japan’s Rapidus wants to mass-produce 2 nm chips in 2027 are raising competitive concerns, because any credible new rival could pressure TSMC’s long-term pricing power and technology lead. A Potential New Rival Wants to Undercut TSMC

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of the company's stock in a transaction dated Monday, June 29th. The stock was acquired at an average price of $76.64 per share, with a total value of $76,640.00. Following the completion of the acquisition, the vice president directly owned 12,051 shares of the company's stock, valued at $923,588.64. This represents a 9.05% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, June 22nd. The stock was acquired at an average price of $79.19 per share, with a total value of $79,190.00. Following the completion of the transaction, the vice president directly owned 5,000 shares of the company's stock, valued at approximately $395,950. The trade was a 25.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 6,857 shares of company stock worth $512,334. 1.11% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on TSM shares. Weiss Ratings restated a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, June 17th. Needham & Company LLC increased their price target 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. Barclays raised their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Finally, Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $449.38.

About Taiwan Semiconductor Manufacturing

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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