Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Franchise GP Ltd Decreases Position

Key Points

• Franchise GP Ltd. reduced its TSMC position by 26.3% in the third quarter, selling 11,580 shares and retaining 32,460 shares valued at approximately $14.8 million. TSMC remains 6.3% of the firm’s portfolio.
• Other major institutional investors largely increased their holdings, and insiders purchased shares during the latest quarter. Overall, hedge funds and institutional investors own 16.51% of TSMC.
• Analysts remain broadly bullish, with an average “Buy” rating and a $528.78 consensus price target, although the company faces concerns over high capital spending, potential overcapacity and broader semiconductor-sector volatility.

Franchise GP Ltd lessened its position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 26.3% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 32,460 shares of the semiconductor company's stock after selling 11,580 shares during the period. Taiwan Semiconductor Manufacturing comprises 6.3% of Franchise GP Ltd's investment portfolio, making the stock its 8th biggest holding. Franchise GP Ltd's holdings in Taiwan Semiconductor Manufacturing were worth $14,808,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Tiger Global Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Invesco Ltd. raised its stake in Taiwan Semiconductor Manufacturing by 1.1% in the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company's stock valued at $1,131,025,000 after buying an additional 40,842 shares in the last quarter. Sei Investments Co. raised its stake in Taiwan Semiconductor Manufacturing by 11.8% in the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock valued at $875,802,000 after buying an additional 274,389 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its stake in Taiwan Semiconductor Manufacturing by 168.6% in the fourth 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 buying an additional 1,313,917 shares in the last quarter. Finally, Hsbc Holdings PLC raised its stake in Taiwan Semiconductor Manufacturing by 40.5% in the fourth quarter. Hsbc Holdings PLC now owns 1,865,064 shares of the semiconductor company's stock valued at $569,227,000 after buying an additional 537,539 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Sanford C. Bernstein upped their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. DA Davidson reissued a "buy" rating and set a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday. Needham & Company LLC raised their target price on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a "buy" rating in a research report on Thursday. Weiss Ratings cut Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, October 6th. Finally, Bank of America upped their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. 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. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $528.78.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin acquired 2,000 shares of the stock in a transaction on Sunday, July 19th. The shares were bought at an average cost of $71.71 per share, with a total value of $143,420.00. Following the transaction, the vice president owned 28,269 shares of the company's stock, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares in the company, valued at $447,000. This trade represents a 20.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 16,043 shares of company stock worth $1,185,746 in the last quarter. 1.11% of the stock is owned by insiders.

Taiwan Semiconductor Manufacturing Stock Performance

NYSE TSM opened at $413.15 on Friday. The company has a fifty day moving average of $434.71 and a two-hundred day moving average of $417.11. The company has a market capitalization of $2.14 trillion, a PE ratio of 26.59, a P/E/G ratio of 0.87 and a beta of 1.37. Taiwan Semiconductor Manufacturing Company Ltd. has a 1 year low of $266.82 and a 1 year high of $487.47. 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 posted its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business had revenue of $46.87 billion for the quarter. As a group, analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.65 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 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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