Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stake Lifted by Iams Wealth Management LLC

Key Points

• Iams Wealth Management increased its TSMC stake by 1,263.6% in the third quarter, acquiring 5,408 additional shares and bringing its total holdings to 5,836 shares valued at approximately $2.66 million.
• Other major institutional investors also raised their positions, and institutional investors collectively own 16.51% of TSMC. Analysts maintain a bullish outlook, with the stock carrying a consensus “Buy” rating and an average price target of $528.22.
• TSMC continues to benefit from strong AI-chip demand, reporting record quarterly results and issuing above-consensus revenue guidance. However, investors remain focused on the risks of its planned capital spending of up to $64 billion and broader concerns over AI infrastructure investment.

Iams Wealth Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 1,263.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 5,836 shares of the semiconductor company's stock after acquiring an additional 5,408 shares during the quarter. Iams Wealth Management LLC's holdings in Taiwan Semiconductor Manufacturing were worth $2,662,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Janus Henderson Group PLC lifted its position in Taiwan Semiconductor Manufacturing by 7.7% in the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company's stock worth $2,497,638,000 after purchasing an additional 594,780 shares during the period. Tiger Global Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Invesco Ltd. increased its position in shares of Taiwan Semiconductor Manufacturing by 1.1% during the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company's stock valued at $1,131,025,000 after purchasing an additional 40,842 shares during the period. Sei Investments Co. increased its position in shares of Taiwan Semiconductor Manufacturing by 11.8% during the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock valued at $875,802,000 after purchasing an additional 274,389 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 168.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock valued at $636,077,000 after purchasing an additional 1,313,917 shares during the period. Institutional investors and hedge funds own 16.51% of the company's stock.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported record third-quarter results, with net income rising 68.7% year over year to approximately NT$763 billion. Revenue and earnings exceeded expectations, supported by strong demand for advanced AI and high-performance-computing chips. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: Management issued above-consensus fourth-quarter revenue guidance of $52.3 billion to $54.3 billion versus an analyst estimate of $48.8 billion. Advanced technologies represented about 79% of wafer revenue, while 2-nanometer adoption is gaining momentum. TSMC beats Q3 earnings and revenue estimates
• Positive Sentiment: TSMC’s chief executive sees no sign of an AI-related demand slowdown. Competition among Nvidia, Apple, Broadcom and other customers for TSMC’s leading-edge capacity also reinforces the company’s pricing power and strategic importance. TSMC capacity is a battleground for AI customers
• Positive Sentiment: Needham raised its price target to $560 and maintained a buy rating, arguing that long-term AI demand remains underappreciated.
• Neutral Sentiment: TSMC is reportedly in discussions with Elon Musk’s proposed Texas “Terafab” complex. Any expansion could strengthen its U.S. footprint and create additional capacity, but the talks remain preliminary. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Investors remain concerned about TSMC’s plan to spend as much as $64 billion on capital expenditures. The investment is intended to meet AI-chip demand, but it raises questions about free cash flow, returns on new capacity and the risk of overbuilding if AI spending cools. TSMC’s $64 billion spending plan
• Negative Sentiment: The stock was caught in a broader semiconductor selloff driven by a hot inflation reading, higher-rate concerns and fears that debt financing could undermine the profitability of AI infrastructure companies such as CoreWeave and Oracle. These macro and financing concerns outweighed the earnings beat in the near term. Chip stocks tumble on AI investment worries

Analysts Set New Price Targets

A number of analysts have recently commented on TSM shares. Zacks Research raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Bank of America raised their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Sanford C. Bernstein raised their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a research note on Tuesday, August 11th. Susquehanna lifted their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a report on Thursday, July 16th. Finally, Needham & Company LLC boosted their price target on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a "buy" rating in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $528.22.

Insider Activity

In related news, VP Shyue-Shyh Lin bought 1,000 shares of the business's stock in a transaction dated Tuesday, July 21st. The shares were bought at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the transaction, the vice president directly owned 30,269 shares of the company's stock, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Lipen Yuan bought 350 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were bought at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the transaction, the vice president directly owned 2,000 shares of the company's stock, valued at $147,160. This trade represents a 21.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 16,043 shares of company stock worth $1,185,746. Insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing Stock Down 1.8%

TSM stock opened at $422.15 on Friday. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $266.82 and a 12 month high of $487.47. The firm has a market cap of $2.19 trillion, a PE ratio of 30.46, a P/E/G ratio of 0.89 and a beta of 1.37. The firm has a 50 day simple moving average of $434.85 and a 200 day simple moving average of $417.14. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. The firm had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing's payout ratio is currently 24.96%.

Taiwan Semiconductor Manufacturing Company Profile

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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