Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Seed Wealth Management Inc. Reduces Holdings

Key Points

• Seed Wealth Management reduced its TSMC stake by 53.9% in the third quarter, selling 1,785 shares and retaining 1,527 shares valued at approximately $697,000.
• Wall Street remains broadly bullish, with an average “Buy” rating and a consensus price target of $528.78; analysts cited strong AI and high-performance-computing demand.
• TSMC insiders purchased 8,043 shares worth nearly $599,000 over the past three months, while the company’s quarterly dividend declined to $1.0854 per share from $1.1136.

Seed Wealth Management Inc. cut its stake in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 53.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,527 shares of the semiconductor company's stock after selling 1,785 shares during the quarter. Seed Wealth Management Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $697,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Fiduciary Advisors Inc. increased its stake in Taiwan Semiconductor Manufacturing by 200.0% in the third quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 40 shares in the last quarter. Evolution Wealth Management Inc. raised its holdings in shares of Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 67 shares during the period. Cedar Mountain Advisors LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second 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 acquired a new position in shares of Taiwan Semiconductor Manufacturing during the first quarter valued at about $32,000. Finally, Markowski Investments bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $33,000. 16.51% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently commented on TSM. TD Cowen raised their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research note on Friday, July 17th. Sanford C. Bernstein boosted their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Stifel Nicolaus started coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a "buy" rating and a $515.00 price target on the stock. Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, October 6th. Finally, Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $528.78.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 350 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following 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 Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Bor-Zen Tien purchased 1,000 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was acquired at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the transaction, the vice president owned 14,051 shares in the company, valued at $1,026,566.06. This represents a 7.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 8,043 shares of company stock valued at $598,956. 1.11% of the stock is currently owned by insiders.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: AI demand is driving strong growth. High-performance computing reportedly represented 68% of TSMC’s latest quarterly revenue, while demand for advanced chips remains well above available supply. Management has raised its forecast amid accelerating data-center and AI spending. The Most Important Number in Taiwan Semiconductor's Earnings Report Was 68%
• Positive Sentiment: Analysts remain bullish following the earnings beat. Recent coverage describes TSMC’s third-quarter report as a “beat and raise,” and Zacks upgraded TSM to Rank #1, or Strong Buy. Supporters argue that the company is trading at a market-level valuation despite growth that is expected to outpace the broader market. TSMC Upgraded to Strong Buy
• Positive Sentiment: Expansion and customer demand support the long-term outlook. TSMC is investing billions to expand U.S. production, while Nvidia reportedly wants Samsung, Micron and SK Hynix to use TSMC’s 3-nanometer process for next-generation high-bandwidth-memory base dies. That could deepen TSMC’s role in AI-chip supply chains. A $4 Billion Reason to Buy TSMC Stock Now
• Neutral Sentiment: Industry growth forecasts are favorable but not an immediate catalyst. Reports project substantial expansion in FinFET, 3D-chip and wafer-foundry markets through 2030, areas where TSMC is a major participant. These forecasts reinforce the structural opportunity but do not materially change near-term earnings expectations. FinFET Technology Global Strategic Business Report
• Negative Sentiment: Broad AI-sector fears are limiting the rebound. Chip stocks initially sold off amid concerns about AI financing, stretched valuations and the possibility that the sector’s crowded trade could unwind. Although semiconductor shares recovered during the session, historical shakeout risks remain. Chip Stocks Shrug Off a Scary Morning
• Negative Sentiment: Near-term margins could face pressure. The ramp-up of TSMC’s 2-nanometer technology and overseas fabs may temporarily reduce gross margins, even though analysts view the impact as an investment-related effect rather than evidence of weakening demand.

Taiwan Semiconductor Manufacturing Stock Performance

NYSE TSM opened at $425.10 on Wednesday. The company has a market cap of $2.20 trillion, a P/E ratio of 27.35, a PEG ratio of 0.85 and a beta of 1.37. The company has a fifty day simple moving average of $434.78 and a 200 day simple moving average of $418.99. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. Taiwan Semiconductor Manufacturing Company Ltd. has a 12-month low of $266.82 and a 12-month high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The firm had revenue of $46.87 billion for the quarter. Sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.03 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed 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. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio is 22.07%.

Taiwan Semiconductor Manufacturing Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.

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