Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Acquired by Ninety One North America Inc.

Key Points

• Ninety One North America increased its TSMC stake by 63.6% in the third quarter, acquiring 62,893 additional shares. TSMC now represents about 3.7% of the firm’s portfolio and is its fourth-largest holding.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $528.22; several firms recently raised their targets to between $554 and $600.
• TSMC continues to benefit from strong AI-chip demand and reported robust profitability, but investors are weighing its planned capital spending of up to $64 billion, potential overcapacity, macroeconomic pressures and a reduced quarterly dividend.

Ninety One North America Inc. lifted its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 63.6% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 161,824 shares of the semiconductor company's stock after buying an additional 62,893 shares during the period. Taiwan Semiconductor Manufacturing comprises approximately 3.7% of Ninety One North America Inc.'s portfolio, making the stock its 4th biggest position. Ninety One North America Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $73,822,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of TSM. Turtle Creek Wealth Advisors LLC boosted its position in Taiwan Semiconductor Manufacturing by 5.7% during the 3rd quarter. Turtle Creek Wealth Advisors LLC now owns 13,852 shares of the semiconductor company's stock worth $6,319,000 after acquiring an additional 743 shares during the period. WealthPlan Investment Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 41.6% in the 3rd quarter. WealthPlan Investment Management LLC now owns 5,973 shares of the semiconductor company's stock valued at $2,725,000 after purchasing an additional 1,754 shares during the period. SBE LLC DBA Cedar Cove Wealth Partners increased its holdings in shares of Taiwan Semiconductor Manufacturing by 57.7% in the 3rd quarter. SBE LLC DBA Cedar Cove Wealth Partners now owns 1,869 shares of the semiconductor company's stock valued at $853,000 after purchasing an additional 684 shares during the period. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors lifted its position in shares of Taiwan Semiconductor Manufacturing by 4.1% in the third quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 2,073 shares of the semiconductor company's stock worth $946,000 after purchasing an additional 82 shares in the last quarter. Finally, Nvwm LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 3.5% in the third quarter. Nvwm LLC now owns 5,504 shares of the semiconductor company's stock worth $2,511,000 after purchasing an additional 187 shares in the last quarter. Hedge funds and other institutional investors own 16.51% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on TSM. Sanford C. Bernstein raised their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research note on Thursday, July 16th. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a "buy" rating and a $515.00 price objective on the stock. Needham & Company LLC increased their target price 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. Finally, Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus 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

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE TSM opened at $422.15 on Friday. The business's 50-day moving average price is $434.85 and its two-hundred day moving average price is $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 Company Ltd. has a one year low of $266.82 and a one year high of $487.47. The company has a market capitalization of $2.19 trillion, a P/E ratio of 30.46, a price-to-earnings-growth ratio of 0.89 and a beta of 1.37.

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. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. The company had revenue of $46.87 billion for the quarter. Analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. This is a negative change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 24.96%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan acquired 350 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were purchased at an average price of $73.58 per share, with a total value of $25,753.00. Following the completion of the transaction, the vice president owned 2,000 shares in the company, valued at $147,160. The trade was a 21.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the business's stock in a transaction that occurred on Tuesday, July 21st. The shares were acquired at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the transaction, the vice president owned 30,269 shares of the company's stock, valued at approximately $2,243,840.97. This represents a 3.42% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders bought 16,043 shares of company stock valued at $1,185,746. 1.11% of the stock is 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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