Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Sold by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates reduced its TSMC position by 17.1% in the third quarter, selling 2,912 shares and retaining 14,145 shares valued at approximately $6.45 million.
• Despite the sale, analyst sentiment remains positive: TSMC has a consensus “Buy” rating and an average price target of $528.78, supported by strong AI and advanced-chip demand.
• TSMC shares opened at $412.35 after falling 4.5%; the company reported $4.62 in quarterly EPS and $46.87 billion in revenue, while its quarterly dividend was reduced to $1.0854 per share.

Pinnacle Associates Ltd. decreased its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 17.1% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 14,145 shares of the semiconductor company's stock after selling 2,912 shares during the quarter. Pinnacle Associates Ltd.'s holdings in Taiwan Semiconductor Manufacturing were worth $6,453,000 at the end of the most recent quarter.

Other institutional investors also recently added to or reduced their stakes in the company. Fiduciary Advisors Inc. raised its holdings in shares of Taiwan Semiconductor Manufacturing by 200.0% in the 3rd 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. grew its stake 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 worth $31,000 after purchasing an additional 67 shares in the last quarter. Cedar Mountain Advisors LLC grew its stake 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 worth $31,000 after purchasing an additional 30 shares in the last quarter. Financial Freedom LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing during the first quarter worth $32,000. Finally, Markowski Investments purchased a new position in Taiwan Semiconductor Manufacturing in the second quarter valued at $33,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: AI demand remains a major growth driver. Recent third-quarter earnings commentary indicates that demand for advanced chips, high-performance computing and AI infrastructure continues to exceed available capacity. Analysts view TSMC’s manufacturing scale, leading-edge nodes and advanced packaging capabilities as key competitive advantages. ASML Vs. Taiwan Semiconductor: Who Can More Fully Satisfy AI Demand?
• Positive Sentiment: Moody’s upgraded TSMC’s issuer rating to Aa2 from Aa3 and changed its outlook to stable, citing the company’s dominant foundry position and persistent AI-related demand. The upgrade may reduce financing risk and reinforces confidence in TSMC’s balance sheet and long-term cash-generation ability. Moody’s upgrades TSMC rating to Aa2
• Positive Sentiment: TSMC is reportedly in discussions with SpaceX regarding the proposed Terafab chip plant. TSMC would participate only if it operates the facility, which could create a meaningful long-term customer and capacity opportunity, although the talks remain preliminary. Taiwan Semiconductor Wants In on SpaceX’s Terafab
• Positive Sentiment: Several investment articles argue that strong recent results, raised guidance and the AI infrastructure build-out could support substantial earnings growth through 2030. Executive share purchases and inclusion in new AI-focused ETFs provide additional supportive signals, though neither guarantees future performance. Prediction: TSMC Stock Is Going to $1,200 by 2030
• Neutral Sentiment: The supplied articles do not report a material negative development for TSMC. The share decline therefore appears more consistent with broader semiconductor-sector or valuation-related pressure and profit-taking than with deterioration in the company’s operating outlook.

Wall Street Analyst Weigh In

TSM has been the topic of a number of analyst reports. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Sanford C. Bernstein lifted their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an "overweight" rating in a research report on Friday, October 16th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b)" rating in a report on Wednesday. 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, twelve have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 4.5%

TSM stock opened at $412.35 on Friday. 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 twelve month low of $266.82 and a twelve month high of $487.47. The company's 50 day moving average is $434.47 and its two-hundred day moving average is $420.16. The stock has a market cap of $2.14 trillion, a P/E ratio of 26.53, a PEG ratio of 0.88 and a beta of 1.37.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a $1.0854 dividend. 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. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 22.27%.

Insiders Place Their Bets

In other news, VP Bor-Zen Tien acquired 1,000 shares of the company's stock in a transaction on Monday, August 3rd. The shares were bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares in the company, valued at $1,026,566.06. This trade represents a 7.66% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Lipen Yuan bought 350 shares of the business'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 transaction, the vice president directly owned 2,000 shares of the company's stock, valued at approximately $147,160. This represents a 21.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 8,043 shares of company stock valued at $598,956. 1.11% of the stock is owned by corporate insiders.

Taiwan Semiconductor Manufacturing Company 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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