Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Sold by Nipun Capital L.P.

Key Points

• Nipun Capital reduced its TSMC position by 20% in the third quarter, selling 17,015 shares and retaining 68,265 shares valued at approximately $31.1 million. TSMC remains the fund’s fourth-largest holding, representing 14.2% of its portfolio.
• Other major institutional investors generally increased their holdings, including Janus Henderson, Tiger Global, SEI Investments and Deutsche Bank. Hedge funds and institutional investors collectively own 16.51% of TSMC.
• TSMC’s underlying outlook remains strong, supported by record revenue and robust AI-chip demand, while analysts maintain a consensus “Buy” rating with a $524.89 price target. Shares recently traded near $453.72, down 3.9%, and the company reduced its quarterly dividend to $1.0854 per share.

Nipun Capital L.P. decreased its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 20.0% during the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 68,265 shares of the semiconductor company's stock after selling 17,015 shares during the period. Taiwan Semiconductor Manufacturing comprises approximately 14.2% of Nipun Capital L.P.'s portfolio, making the stock its 4th biggest holding. Nipun Capital L.P.'s holdings in Taiwan Semiconductor Manufacturing were worth $31,142,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in TSM. Janus Henderson Group PLC grew its holdings in Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company's stock worth $2,497,638,000 after acquiring an additional 594,780 shares during the last quarter. Tiger Global Management LLC raised 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 valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.1% during the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company's stock worth $1,131,025,000 after purchasing an additional 40,842 shares during the period. Sei Investments Co. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock worth $875,802,000 after purchasing an additional 274,389 shares during the period. Finally, Deutsche Bank AG grew its stake in shares of Taiwan Semiconductor Manufacturing by 94.3% in the fourth quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company's stock worth $688,118,000 after purchasing an additional 1,098,727 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Record quarterly revenue reinforces AI demand. TSMC reported third-quarter revenue of approximately NT$1.49 trillion ($46.7 billion), up about 50% year over year and above market expectations. September revenue rose 54.6% to NT$511.86 billion, extending a streak of strong monthly results. The figures point to robust demand for advanced chips used by Nvidia, AMD and other AI customers. TSMC's third-quarter revenue surges to record, beating market forecast
• Positive Sentiment: Industry developments support TSMC’s advanced-packaging ecosystem. GlobalFoundries announced a multiyear, $2 billion agreement to supply silicon interposers for TSMC’s CoWoS packaging technology in the United States. The deal, with production expected to ramp in 2028, suggests sustained long-term demand for AI and high-performance-computing infrastructure. GlobalFoundries shares rise on $2 billion TSMC agreement
• Positive Sentiment: Insider purchases provide a modest confidence signal. TSMC’s CEO, CFO, COO and multiple senior executives disclosed small open-market purchases. While the dollar amounts are limited relative to the company’s market capitalization, the broad participation is directionally supportive. Taiwan Semiconductor Manufacturing CEO purchases stock
• Neutral Sentiment: Investors are awaiting additional guidance. The revenue beat improves expectations for TSMC’s upcoming earnings discussion, particularly regarding capital spending, 2-nanometer production and the durability of AI demand. However, the market may need further guidance before extending the rally.
• Negative Sentiment: Risk-off market conditions overwhelmed the favorable company news. Broader equities weakened as oil prices and Treasury yields rose, pressuring high-valuation technology stocks. TSMC’s elevated valuation and proximity to its 52-week high may also have encouraged profit-taking after the strong run.
• Negative Sentiment: TSMC was ruled out of operating Elon Musk’s planned Terafab facility. Musk said Tesla and SpaceX will build and operate the Texas project independently, limiting a potential new U.S. manufacturing opportunity for TSMC. The announcement is a relatively small factor compared with TSMC’s core AI business. TSM Stock Falls After Musk Says TSMC Won't Run Terafab

Taiwan Semiconductor Manufacturing Stock Down 3.9%

TSM traded down $18.48 during midday trading on Thursday, reaching $453.72. The company's stock had a trading volume of 5,420,536 shares, compared to its average volume of 13,039,029. 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 current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.35 trillion, a price-to-earnings ratio of 32.80, a PEG ratio of 1.07 and a beta of 1.37. The stock's 50-day moving average is $431.08 and its 200-day moving average is $412.62.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan bought 350 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were purchased at an average price of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the purchase, the vice president owned 2,000 shares in the company, valued at approximately $147,160. This represents a 21.21% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien purchased 1,000 shares of the business's stock in a transaction dated Monday, August 3rd. The shares were purchased at an average price of $73.06 per share, for a total transaction 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 16,043 shares of company stock worth $1,185,746. 1.11% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts have commented on TSM shares. Zacks Research raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Bank of America lifted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Sanford C. Bernstein upped their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Finally, TD Cowen raised their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of "Buy" and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing 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.

Want to see what other hedge funds are holding TSM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.