Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Sold by Salem Investment Counselors Inc.

Key Points

• Salem Investment Counselors reduced its TSMC stake by 8.2% in the third quarter, selling 6,606 shares and retaining 73,674 shares valued at approximately $33.6 million. Institutional investors and hedge funds collectively own 16.51% of the company.
• TSMC’s outlook remains supported by strong AI-chip demand, dominant advanced-chip manufacturing capacity and bullish analyst expectations. The consensus rating is “Buy,” with an average price target of $524.89.
• TSMC shares opened at $445.34, near a 52-week high, but elevated valuation and heavy capital spending pose risks. The company also lowered its quarterly dividend to $1.0854 per share, a 1.0% annualized yield.

Salem Investment Counselors Inc. lessened its holdings in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 8.2% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 73,674 shares of the semiconductor company's stock after selling 6,606 shares during the period. Taiwan Semiconductor Manufacturing makes up 0.8% of Salem Investment Counselors Inc.'s holdings, making the stock its 26th biggest position. Salem Investment Counselors Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $33,623,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in TSM. Cedar Mountain Advisors LLC grew its position in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 30 shares during the period. Markowski Investments purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $33,000. Evolution Wealth Management Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after buying an additional 67 shares during the last quarter. Financial Freedom LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 1st quarter valued at about $32,000. Finally, Lam Group Inc. acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter valued at about $34,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Analysts expect another powerful quarter, with estimates cited at approximately $46.7 billion in revenue and $23.4 billion in profit. Recent monthly revenue data and accelerating growth have reinforced expectations that AI demand is translating into substantial sales and earnings gains. TSMC Eyes $23.4 Billion Q3 Profit on $46.7 Billion Revenue
• Positive Sentiment: TSMC’s dominant position in contract manufacturing—especially its reported 90% share of advanced-chip production—continues to support pricing power, strong customer relationships and long-term AI infrastructure growth. Reports also point to higher chip prices and expanding capacity as potential drivers of stronger 2027 results. TSMC Earnings Preview
• Positive Sentiment: Erste Group raised its TSMC EPS forecasts to $16.92 for fiscal 2026 and $22.26 for fiscal 2027, above the current-year consensus of $16.56. The revisions support the bullish view that earnings growth may justify the stock’s premium valuation.
• Neutral Sentiment: October 15 earnings are the immediate decision point. Investors are looking for evidence that demand remains ahead of supply, along with updated capital-spending and capacity guidance. The report could also serve as an important read-through for Nvidia and the broader AI semiconductor trade. Dear TSMC Stock Fans, Circle Oct. 15 on Your Calendar
• Negative Sentiment: Investor expectations are unusually high after a major rally: TSMC trades at roughly 32 times earnings and has risen near its annual high. Analysts caution that heavy capital expenditures could pressure free cash flow, while any earnings or guidance shortfall could trigger profit-taking.
• Negative Sentiment: A broader pullback in semiconductor-equipment stocks shows that investors are locking in gains across the AI supply chain. That risk could weigh on TSMC if enthusiasm fades or concerns grow that AI spending has already been fully priced in. Semiconductor Equipment Stocks Slide as Investors Take Profits

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 2,000 shares of the business's stock in a transaction that occurred on Sunday, July 19th. The stock was purchased at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the purchase, the vice president directly owned 28,269 shares in the company, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Bor-Zen Tien purchased 3,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average cost of $74.39 per share, with a total value of $223,170.00. Following the acquisition, the vice president directly owned 4,000 shares in the company, valued at $297,560. This trade represents a 300.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 16,043 shares of company stock worth $1,185,746 in the last 90 days. Corporate insiders own 1.11% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on TSM shares. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. DA Davidson raised their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Susquehanna lifted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the company an "overweight" rating in a research report on Tuesday, October 6th. Finally, Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of "Buy" and an average target price of $524.89.

Taiwan Semiconductor Manufacturing Stock Up 0.2%

TSM stock opened at $445.34 on Wednesday. The firm has a market cap of $2.31 trillion, a PE ratio of 32.13, a P/E/G ratio of 0.98 and a beta of 1.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The firm's fifty day moving average is $434.46 and its 200 day moving average is $415.74. Taiwan Semiconductor Manufacturing Company Ltd. has a one year low of $266.82 and a one year high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

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.

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