X Square Capital LLC Acquires New Holdings in Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Key Points

• X Square Capital LLC acquired 2,121 TSMC shares during the second quarter, valued at approximately $1.013 million. Institutional investors collectively own 16.51% of the company.
• TSMC raised its expected 2026 capital expenditures to $60 billion–$64 billion to expand capacity for AI, high-performance computing, and 5G, while signaling plans to increase dividend payments. Analysts maintain a consensus “Buy” rating with an average price target of $524.25.
• Potential risks include advanced-chip capacity constraints and the stock’s premium valuation, which could leave shares vulnerable if AI-driven growth, margins, or expansion plans disappoint.

X Square Capital LLC bought a new position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 2,121 shares of the semiconductor company's stock, valued at approximately $1,013,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Quattro Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $27,000. Strategic Advocates LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after buying an additional 36 shares during the period. Ares Financial Consulting LLC acquired a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $29,000. Finally, Basepoint Wealth LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $31,000. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC raised its expected 2026 capital expenditures to $60 billion-$64 billion and said it plans to increase dividend payments. The spending is intended to expand capacity for artificial intelligence, high-performance computing, and 5G applications, signaling management’s confidence that semiconductor demand will remain strong. TSMC Commits Higher CapEx in 2026 While Raising Dividend Payouts
• Positive Sentiment: Wall Street’s generally bullish view continues to support TSMC’s investment case. Analysts point to its leadership in advanced-node manufacturing, stronger expected growth, and an attractive valuation relative to some competing foundries. Is It Worth Investing in TSMC Based on Wall Street’s Bullish Views?
• Positive Sentiment: Vice President Lipen Yuan disclosed purchases totaling 1,350 shares, increasing his direct holdings by roughly 20%. The insider buying may be interpreted as a vote of confidence in TSMC’s future, although the dollar value is small relative to the company’s market capitalization. TSMC Insider Trading Activity
• Neutral Sentiment: Reports highlight the expanding AI investment cycle and possible futures tied to GPU and AI-compute pricing. These developments could improve visibility for leading chip manufacturers such as TSMC, but they are not direct changes to the company’s earnings or operations. U.S. Markets Prepare for AI Compute Derivatives
• Negative Sentiment: Capacity constraints in advanced-chip manufacturing remain a potential near-term risk. Tight supply supports pricing, but production bottlenecks could limit how quickly TSMC converts AI demand into revenue and may increase execution and capital-spending risks. What Could TSMC Capacity Strains Mean for AI Demand?
• Negative Sentiment: TSMC trades at a premium to estimated intrinsic value in some valuation models, leaving the stock vulnerable to a pullback if AI growth expectations, margins, or expansion plans disappoint. TSMC Trades Above GF Value as Chip Capacity Tightens

Taiwan Semiconductor Manufacturing Trading Up 0.6%

Shares of Taiwan Semiconductor Manufacturing stock opened at $418.58 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. The stock has a fifty day simple moving average of $425.67 and a 200 day simple moving average of $393.23. Taiwan Semiconductor Manufacturing Company Ltd. has a 12-month low of $225.63 and a 12-month high of $479.00. The company has a market capitalization of $2.17 trillion, a P/E ratio of 30.20, a price-to-earnings-growth ratio of 0.96 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared 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 represents a $4.34 dividend on an annualized basis 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 currently 21.43%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated 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 transaction, the vice president directly owned 14,051 shares in the company, valued at approximately $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 purchased 1,000 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the purchase, the vice president directly owned 6,000 shares in the company, valued at $447,000. This represents a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 17,662 shares of company stock valued at $1,307,491 over the last three months. 1.11% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms recently commented on TSM. Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, August 12th. TD Cowen increased their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research report on Friday, July 17th. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Finally, Bank of America increased their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $524.25.

About Taiwan Semiconductor Manufacturing

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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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.

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