Taiwan Semiconductor Manufacturing Company Ltd. $TSM Shares Sold by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors cut its TSM position by 13.7% in the first quarter, selling 493,105 shares and leaving it with 3.11 million shares valued at about $1.05 billion.
• TSMC reported record Q2 profit and beat expectations, driven by strong demand for AI chips, and it also raised its 2026 revenue growth outlook to above 40%.
• The company increased its quarterly dividend to $1.1136 per share, while analysts remain broadly positive with a consensus Buy rating and an average price target of $490.

Dimensional Fund Advisors LP trimmed its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 13.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,112,246 shares of the semiconductor company's stock after selling 493,105 shares during the period. Dimensional Fund Advisors LP owned approximately 0.06% of Taiwan Semiconductor Manufacturing worth $1,051,783,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Van ECK Associates Corp boosted its stake in 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 valued at $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock worth $636,077,000 after purchasing an additional 1,313,917 shares in the last quarter. SurgoCap Partners LP acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the third quarter worth about $360,443,000. Finally, Capital Research Global Investors lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock valued at $976,821,000 after purchasing an additional 1,281,648 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien purchased 2,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the 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 transaction, the vice president owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. This represents a 7.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have purchased a total of 6,857 shares of company stock valued at $512,334 in the last ninety days. 1.11% of the stock is currently owned by company insiders.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM opened at $397.59 on Monday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $223.70 and a fifty-two week high of $479.00. The firm has a 50-day simple moving average of $426.79 and a 200-day simple moving average of $378.48. The company has a market capitalization of $2.06 trillion, a price-to-earnings ratio of 28.69, a price-to-earnings-growth ratio of 0.95 and a beta of 1.36.

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 (EPS) for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%. On average, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.83 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is presently 21.43%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Zacks Research raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday. TD Cowen boosted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research note on Friday. Barclays increased their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a report on Friday. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, July 13th. Finally, Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a report on Saturday. Three 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's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $490.00.

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.

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