Tran Capital Management L.P. Reduces Stock Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• Tran Capital Management reduced its TSMC position by 2% in the second quarter, selling 1,379 shares and retaining 68,614 shares valued at approximately $32.8 million. TSMC represents 3.8% of the firm’s portfolio.
• Other institutional investors, including Tiger Global, Van ECK Associates and T. Rowe Price, increased their holdings, while hedge funds and other institutions collectively own 16.51% of TSMC. Recent insider purchases also indicate some confidence in the company.
• TSMC continues to benefit from AI-related demand and maintains a favorable analyst consensus rating of “Buy,” with an average price target of $524.25. However, SoftBank’s large share sale and concerns that semiconductor valuations may be near a peak create potential near-term pressure.

Tran Capital Management L.P. cut its holdings in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 2.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 68,614 shares of the semiconductor company's stock after selling 1,379 shares during the period. Taiwan Semiconductor Manufacturing comprises about 3.8% of Tran Capital Management L.P.'s holdings, making the stock its 11th largest position. Tran Capital Management L.P.'s holdings in Taiwan Semiconductor Manufacturing were worth $32,768,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. Tiger Global Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% in the 1st 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. Van ECK Associates Corp raised its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $495,163,000. T. Rowe Price Investment Management Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock worth $636,077,000 after purchasing an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP acquired a new position in Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $360,443,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC remains a key beneficiary of the AI boom. Nvidia is reportedly accelerating development of its next-generation Feynman platform, which could increase demand for TSMC’s 2-nanometer chips and advanced packaging capacity. Nvidia’s Next-Gen Feynman AI Platform Is Ramping Up
• Positive Sentiment: TSMC and Sony committed $4.69 billion to a new CMOS image-sensor plant in Kumamoto, Japan, with production targeted for 2029 and support from Japanese government subsidies. The project could broaden TSMC’s geographic footprint and strengthen its relationship with a major customer. Sony and TSMC’s $4.7 Billion Venture
• Positive Sentiment: Several institutional investors expressed confidence in TSMC: Causeway Capital increased its position, while Perseverance Asset Management International also raised its stake. Analysts including Sanford C. Bernstein continue to forecast meaningful appreciation. Causeway Capital Boosts TSMC Stake
• Neutral Sentiment: TSMC filed reviewed interim financial statements with the SEC. The filing provides updated regulatory disclosure but, based on the available report, does not identify a material change to the company’s outlook. TSMC Files Reviewed Interim Financials
• Negative Sentiment: SoftBank disclosed that it sold 71.5% of its TSMC holdings during the second quarter. Although the sale may reflect portfolio management rather than a change in fundamentals, it creates near-term overhang and may weigh on sentiment. SoftBank Sells Most of Its Taiwan Semiconductor Holdings
• Negative Sentiment: Investors are increasingly concerned that strong earnings may already be reflected in chip valuations, while Fidelity has warned that the semiconductor cycle could be nearing a peak. Those concerns are particularly relevant for TSMC, whose valuation and recent gains leave the stock vulnerable to profit-taking. Analyst Sees Trouble Brewing for Hot Chip Stocks

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average price of $79.19 per share, for a total transaction of $79,190.00. Following the transaction, the vice president directly owned 5,000 shares in the company, valued at $395,950. This trade represents a 25.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Bor-Zen Tien purchased 1,000 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were acquired at an average price of $73.06 per share, with a total value of $73,060.00. Following the purchase, 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 18,312 shares of company stock valued at $1,347,058. 1.11% of the stock is currently owned by company insiders.

Taiwan Semiconductor Manufacturing Stock Down 0.9%

Taiwan Semiconductor Manufacturing stock opened at $426.67 on Friday. The company has a market capitalization of $2.21 trillion, a P/E ratio of 30.78, a PEG ratio of 0.98 and a beta of 1.38. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.25 and a current ratio of 2.46. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $223.70 and a fifty-two week high of $479.00. The stock has a 50-day simple moving average of $425.97 and a 200-day simple moving average of $390.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%. Equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 earnings per share 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. Stockholders of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 21.43%.

Analysts Set New Price Targets

TSM has been the topic of several recent analyst reports. TD Cowen increased their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research note on Friday, July 17th. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday. Sanford C. Bernstein upped their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Susquehanna lifted their price target 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. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $524.25.

Taiwan Semiconductor Manufacturing Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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