Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Position Lessened by Contravisory Investment Management Inc.

Key Points

• Contravisory Investment Management reduced its TSMC stake by 17.2% in the third quarter, selling 7,198 shares and retaining 34,560 shares valued at $15.8 million. Other major institutions increased their holdings, while institutional investors collectively owned 16.51% of the stock.
• TSMC shares traded at $445.34, near the upper end of their 12-month range, with a $2.31 trillion market capitalization and a P/E ratio of 32.13. The company reported $4.28 in quarterly EPS on $39.89 billion in revenue, while analysts forecast $16.56 in full-year EPS.
• Analyst sentiment remained bullish, with the stock carrying an average “Buy” rating and a $524.89 price target. However, TSMC cut its quarterly dividend to $1.0854 from $1.1136, and elevated valuation and capital spending could pressure free cash flow.

Contravisory Investment Management Inc. lessened its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 17.2% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 34,560 shares of the semiconductor company's stock after selling 7,198 shares during the period. Taiwan Semiconductor Manufacturing comprises 2.0% of Contravisory Investment Management Inc.'s investment portfolio, making the stock its 3rd biggest holding. Contravisory Investment Management Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $15,766,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Tiger Global Management LLC raised its stake in shares of 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 worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. T. Rowe Price Investment Management Inc. increased its holdings in 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 worth $636,077,000 after acquiring an additional 1,313,917 shares during the period. Corient Private Wealth LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 330.0% in the fourth quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company's stock worth $481,111,000 after buying an additional 1,215,035 shares in the last quarter. Fundsmith LLP bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter worth about $548,465,000. Finally, Assenagon Asset Management S.A. bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter worth approximately $490,461,000. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM traded up $0.99 during trading hours on Tuesday, hitting $445.34. The stock had a trading volume of 8,548,796 shares, compared to its average volume of 13,022,878. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $266.82 and a 12 month high of $487.47. The stock has a fifty day moving average price of $433.89 and a 200 day moving average price of $415.05. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The firm has a market capitalization of $2.31 trillion, a PE ratio of 32.13, a PEG ratio of 1.00 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 2,000 shares of the company's stock in a transaction on Sunday, July 19th. The stock was acquired at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the purchase, the vice president directly owned 28,269 shares of the company's stock, valued at $2,027,169.99. This trade represents a 7.61% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Lipen Yuan bought 1,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were bought at an average price of $74.50 per share, with a total value of $74,500.00. Following the transaction, the vice president owned 6,000 shares of the company's stock, valued at $447,000. The trade was a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 16,043 shares of company stock valued at $1,185,746 over the last 90 days. Company insiders own 1.11% of the company's stock.

Analyst Ratings Changes

A number of analysts recently weighed in on TSM shares. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Susquehanna boosted their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a "buy" rating in a research report on Monday, July 27th. Finally, Sanford C. Bernstein increased their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Buy" and an average price target of $524.89.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analysts and investors expect robust quarterly results, with estimates pointing to approximately $46.7 billion in revenue and $23.4 billion in profit. Recent revenue acceleration, pricing power and capacity expansion could support stronger-than-expected 2027 guidance. TSMC Q3 earnings expectations
• Positive Sentiment: AI infrastructure demand continues to surprise to the upside, while TSMC retains a dominant position in advanced chip manufacturing. Its customer relationships, roughly 73% foundry share and about 90% share in advanced chips strengthen the long-term growth case. TSMC strong buy analysis
• Positive Sentiment: Erste Group raised its TSMC EPS forecasts to $16.92 for fiscal 2026 and $22.26 for fiscal 2027, above the cited current-year consensus of $16.56. Analyst estimate revisions
• Neutral Sentiment: The October 15 earnings release is the immediate catalyst. Strong results and guidance could validate the AI investment thesis, while any sign of slowing demand, supply constraints or weaker margins could trigger volatility. TSMC earnings catalyst
• Negative Sentiment: TSMC’s shares have become more demanding after a major AI-driven run, raising questions about whether cash flow can justify the valuation. Analysts also warn that heavy capital expenditures could pressure free cash flow and leave little room for an earnings miss. TSMC valuation and cash-flow analysis
• Negative Sentiment: Profit-taking across semiconductor-equipment stocks after a strong year shows that the broader AI trade is vulnerable to consolidation, which could weigh on TSMC despite favorable fundamentals. Semiconductor sector profit-taking

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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