Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Sold by TB Alternative Assets Ltd.

Key Points

• TB Alternative Assets cut its TSMC position by 46.6% in the third quarter, selling 73,746 shares and retaining 84,644 shares valued at approximately $38.6 million. TSMC remains the fund’s fourth-largest holding and represents 8% of its portfolio.
• TSMC’s operating outlook remains strong, driven by AI demand. Third-quarter net income rose 68.7% year over year, revenue increased about 51%, and management issued fourth-quarter guidance above analysts’ expectations.
• Analysts remain broadly bullish, but investors face valuation and spending risks. The stock has a consensus “Buy” rating with a $528.78 price target, while concerns persist over heavy capital expenditures, potential overcapacity, higher interest rates and a broader chip-sector selloff.

TB Alternative Assets Ltd. cut its position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 46.6% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 84,644 shares of the semiconductor company's stock after selling 73,746 shares during the quarter. Taiwan Semiconductor Manufacturing accounts for 8.0% of TB Alternative Assets Ltd.'s investment portfolio, making the stock its 4th biggest holding. TB Alternative Assets Ltd.'s holdings in Taiwan Semiconductor Manufacturing were worth $38,614,000 at the end of the most recent quarter.

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

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

Wall Street Analyst Weigh In

TSM has been the subject of a number of research reports. Sanford C. Bernstein lifted their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Susquehanna raised their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research note on Thursday, July 16th. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a "buy" rating in a research note on Thursday. Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, October 6th. Finally, Bank of America upped their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Three 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $528.78.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the transaction, 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 purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Lipen Yuan purchased 350 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was bought at an average price of $73.58 per share, with a total value of $25,753.00. Following the acquisition, the vice president owned 2,000 shares in the company, valued at $147,160. This trade represents a 21.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 16,043 shares of company stock worth $1,185,746. 1.11% of the stock is currently owned by company insiders.

Taiwan Semiconductor Manufacturing Trading Down 2.2%

Shares of NYSE TSM traded down $9.10 on Friday, reaching $413.15. 16,622,028 shares of the company traded hands, compared to its average volume of 10,450,369. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $266.82 and a fifty-two week high of $487.47. The company has a 50 day moving average of $434.71 and a 200 day moving average of $417.11. 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 stock has a market capitalization of $2.14 trillion, a PE ratio of 26.59, a P/E/G ratio of 0.87 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. The firm 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%. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.65 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, December 10th. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 24.96%.

About Taiwan Semiconductor Manufacturing

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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