Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Sold by Ativo Capital Management LLC

Key Points

• Ativo Capital reduced its TSMC stake by 4.5% in the third quarter, selling 1,198 shares, but the company remains the firm’s largest holding at 8.9% of its portfolio, valued at $11.5 million.
• TSMC reported strong quarterly results, with revenue up 41.2% year over year to $46.72 billion and EPS of $4.60, beating estimates. Analysts maintain a consensus “Buy” rating with an average price target of $528.78, supported by strong AI-chip demand and potential advanced-packaging price increases.
• Insiders bought shares recently, while the company declared a slightly reduced quarterly dividend of $1.0854 per share, equivalent to a 1.0% annualized yield.

Ativo Capital Management LLC cut its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 4.5% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 25,265 shares of the semiconductor company's stock after selling 1,198 shares during the period. Taiwan Semiconductor Manufacturing accounts for 8.9% of Ativo Capital Management LLC's portfolio, making the stock its largest holding. Ativo Capital Management LLC's holdings in Taiwan Semiconductor Manufacturing were worth $11,526,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Brookstone Capital Management raised its stake in Taiwan Semiconductor Manufacturing by 87.3% during the second quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company's stock valued at $12,008,000 after purchasing an additional 11,719 shares in the last quarter. Y Intercept Hong Kong Ltd lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 273.2% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company's stock valued at $27,438,000 after acquiring an additional 59,435 shares during the last quarter. Opal Capital LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 72.5% in the 1st quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company's stock valued at $9,384,000 after purchasing an additional 11,666 shares during the last quarter. Western Wealth Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 27.4% in the 1st quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company's stock worth $9,447,000 after purchasing an additional 6,013 shares during the period. Finally, Elevation Point Wealth Partners LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 306.7% in the 1st quarter. Elevation Point Wealth Partners LLC now owns 52,397 shares of the semiconductor company's stock worth $17,728,000 after purchasing an additional 39,514 shares during the period. Hedge funds and other institutional investors own 16.51% of the company's stock.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan purchased 350 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were acquired at an average price of $73.58 per share, for a total transaction of $25,753.00. Following the purchase, the vice president owned 2,000 shares of the company's stock, valued at $147,160. This trade represents a 21.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Bor-Zen Tien purchased 1,000 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was bought at an average cost of $73.06 per share, with a total value of $73,060.00. Following the acquisition, the vice president owned 14,051 shares of the company's stock, valued at approximately $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. Insiders have bought 7,043 shares of company stock worth $530,986 in the last 90 days. Insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing Trading Up 0.6%

TSM opened at $439.35 on Thursday. The firm has a market cap of $2.28 trillion, a price-to-earnings ratio of 28.27, a PEG ratio of 0.85 and a beta of 1.37. The stock has a fifty day moving average price of $434.85 and a 200-day moving average price of $398.58. Taiwan Semiconductor Manufacturing Company Ltd. has a 12 month low of $266.82 and a 12 month high of $487.47. 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 (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating analysts' consensus estimates of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business had revenue of $46.72 billion for the quarter, compared to analysts' expectations of $45.67 billion. During the same period last year, the business earned $2.92 EPS. The company's revenue was up 41.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders 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 is a negative change 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%. Taiwan Semiconductor Manufacturing's payout ratio is presently 22.27%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on TSM shares. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday, July 16th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. 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. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b)" rating in a research note on Wednesday, October 21st. Finally, Barclays upped their target price on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an "overweight" rating in a research note on Friday, October 16th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $528.78.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Advanced-packaging pricing power: Reports indicate TSMC could raise prices for its CoWoS AI-chip packaging by as much as 20%, with customers including NVIDIA and AMD. Separate estimates call for 10%–20% increases in advanced packaging and 3%–6% increases for some 2-nanometer and 3-nanometer wafers. The potential increases suggest demand remains above capacity and could support revenue, margins and recovery of expansion costs. TSMC Gains 3% on Reported 20% Price Hike for AI Chip Packaging
• Positive Sentiment: Strong earnings and AI outlook: Third-quarter revenue rose 41.2% year over year to approximately $46.72 billion, while earnings per share of $4.60 exceeded the $4.45 consensus estimate. Management highlighted surging AI demand, continued advanced-node expansion and a positive 2026 outlook, reinforcing TSMC’s position as a key manufacturing beneficiary of the AI buildout. TSM vs. MU: Which Semiconductor Stock Is the Better Buy Post-Earnings?
• Positive Sentiment: Capacity expansion supports long-term growth: TSMC plans to increase advanced-packaging capacity while maintaining capital-expenditure guidance of roughly $60 billion–$64 billion. Its scale, manufacturing lead and more than 50% net margin make the company an attractive alternative for investors seeking AI exposure beyond chip designers such as NVIDIA. Beyond NVIDIA: Why TSMC Stock Looks Attractive After Q3 Earnings
• Neutral Sentiment: Risks remain: The ramp-up of 2-nanometer production and large capital investments have pressured sequential gross margins, while higher chip-manufacturing costs could eventually weigh on customers and end-market demand. Recent semiconductor volatility also shows that strong operating results have not eliminated concerns about elevated AI valuations and cyclical risk.

About Taiwan Semiconductor Manufacturing

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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