Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stake Raised by Formuepleje A S

Key Points

• Formuepleje A S increased its TSMC stake by 2% in the third quarter, adding 2,986 shares to own 150,978 shares valued at approximately $68.9 million. TSMC now represents about 5.9% of the investor’s portfolio.
• TSMC reported quarterly revenue of $46.87 billion and earnings of $4.62 per share, with a 50.31% net margin and 39.25% return on equity. The company also reduced its quarterly dividend to $1.0854 per share, equivalent to a 1.0% annualized yield.
• Analysts maintain a generally bullish outlook, with a consensus “Buy” rating and an average price target of $528.22 versus the reported share price of $422.15. However, investors remain attentive to TSMC’s substantial planned capital spending and the risk of weaker returns if AI-chip demand slows.

Formuepleje A S lifted its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 2.0% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 150,978 shares of the semiconductor company's stock after buying an additional 2,986 shares during the quarter. Taiwan Semiconductor Manufacturing makes up approximately 5.9% of Formuepleje A S's portfolio, making the stock its 5th biggest holding. Formuepleje A S's holdings in Taiwan Semiconductor Manufacturing were worth $68,875,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Evolution Wealth Management Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Cedar Mountain Advisors LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 88.2% in the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 30 shares during the period. Financial Freedom LLC bought a new position in Taiwan Semiconductor Manufacturing in the 1st quarter valued at $32,000. Markowski Investments purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $33,000. Finally, Lam Group Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter valued at $34,000. 16.51% of the stock is currently owned by institutional investors.

Taiwan Semiconductor Manufacturing Trading Down 1.8%

Shares of TSM opened at $422.15 on Friday. The firm's 50 day simple moving average is $434.85 and its 200 day simple moving average is $417.14. The company has a market capitalization of $2.19 trillion, a P/E ratio of 30.46, a P/E/G ratio of 0.89 and a beta of 1.37. 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 Company Ltd. has a 1-year low of $266.82 and a 1-year high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The business had revenue of $46.87 billion during the quarter. Sell-side 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 decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio is 24.96%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a report on Thursday, July 16th. Zacks Research raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a "buy" rating in a research note on Thursday. TD Cowen boosted their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research report on Friday, July 17th. Finally, Sanford C. Bernstein upped their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. Three research 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.com, the stock has an average rating of "Buy" and a consensus target price of $528.22.

Key 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

Insider Activity

In related news, VP Shyue-Shyh Lin acquired 1,000 shares of the company's stock in a transaction dated Tuesday, July 21st. The stock was bought at an average cost of $74.13 per share, with a total value of $74,130.00. Following the acquisition, the vice president owned 30,269 shares of the company's stock, valued at approximately $2,243,840.97. The trade was a 3.42% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Bor-Zen Tien acquired 1,000 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were bought at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares in the company, valued at $1,026,566.06. The trade was a 7.66% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have purchased 16,043 shares of company stock worth $1,185,746. 1.11% of the stock is currently owned by corporate insiders.

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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