Taiwan Semiconductor Manufacturing Company Ltd. $TSM Position Decreased by Main Street Research LLC

Key Points

• Main Street Research LLC trimmed its TSM stake by 1.2% in the fourth quarter, but still held 218,147 shares worth about $66.5 million, making TSM its ninth-largest holding.
• Wall Street sentiment remains constructive: several analysts upgraded the stock, and the consensus rating stands at “Buy” with an average price target of $404.29.
• Recent news around TSMC has been largely positive for growth, including AMD ramping its 2nm production with TSMC and TSMC raising its 2030 semiconductor market forecast to over $1.5 trillion.

Main Street Research LLC lessened its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 1.2% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 218,147 shares of the semiconductor company's stock after selling 2,724 shares during the period. Taiwan Semiconductor Manufacturing makes up approximately 3.7% of Main Street Research LLC's portfolio, making the stock its 9th biggest holding. Main Street Research LLC's holdings in Taiwan Semiconductor Manufacturing were worth $66,466,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of TSM. Stephens Consulting LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after buying an additional 41 shares during the last quarter. Ares Financial Consulting LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $29,000. Resources Management Corp CT ADV purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $32,000. Maseco LLP purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $35,000. Finally, Cedar Wealth Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 91.4% in the 3rd quarter. Cedar Wealth Management LLC now owns 134 shares of the semiconductor company's stock worth $37,000 after buying an additional 64 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on TSM shares. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Finally, Wedbush reiterated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: AMD said it is ramping production of its next-generation EPYC “Venice” processors on TSMC’s 2nm process, highlighting that TSMC’s most advanced manufacturing node is already winning major AI/HPC customers. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD’s CEO also said the company is asking partners to ramp production due to strong AI demand, which suggests continued strength for TSMC as a critical manufacturing partner. AMD asking partners to ramp up production, CEO says
• Positive Sentiment: TSMC raised its 2030 global semiconductor market forecast to more than $1.5 trillion, signaling a bigger long-term demand runway for chip production. Taiwan Semiconductor Manufacturing Company Ltd. Raises 2030 Global Semiconductor Market Forecast to Over USD1.5 Trillion
• Positive Sentiment: Nvidia’s strong AI results and upbeat outlook helped lift sentiment across Asian chipmakers, reinforcing investor confidence in TSMC’s AI supply-chain role. Nvidia's AI Outlook Sends Asian Chipmakers Up 5.5%
• Neutral Sentiment: Taiwan’s central bank is considering limits on how often foreign investors can switch currencies for TSMC dividend payments, a policy issue that could affect some shareholders but is unlikely to change the business outlook directly. Taiwan may limit currency switching for TSMC dollar dividends to once a year, sources say
• Neutral Sentiment: Tokyo Electron’s Taiwan unit said it will not appeal a trade-secrets ruling tied to TSMC, which lowers legal uncertainty but appears limited in direct financial impact. Tokyo Electron's Taiwan unit says it will not appeal ruling in TSMC trade secrets case
• Negative Sentiment: Articles focused on slowing TSM growth and a potential bottleneck to Nvidia’s expansion underscore investor concern that TSMC’s infrastructure capacity may eventually constrain AI-chip demand growth. IDVO's $445 Million Income Play Faces a Critical Test When TSM Growth Slows

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction that occurred on 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 owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Bor-Zen Tien bought 2,000 shares of the company's stock in a transaction on Tuesday, May 19th. The shares were bought 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 approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders purchased 3,346 shares of company stock worth $218,005. 1.11% of the stock is owned by company insiders.

Taiwan Semiconductor Manufacturing Price Performance

Taiwan Semiconductor Manufacturing stock opened at $404.24 on Monday. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $190.03 and a 12 month high of $421.97. The company has a current ratio of 2.49, a quick ratio of 2.32 and a debt-to-equity ratio of 0.16. The business's 50 day simple moving average is $370.58 and its 200 day simple moving average is $338.50. The company has a market cap of $2.09 trillion, a price-to-earnings ratio of 33.63, a PEG ratio of 1.18 and a beta of 1.39.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid 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 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 24.71%.

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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