Giverny Capital Inc. Sells 4,470 Shares of Taiwan Semiconductor Manufacturing Company Ltd. $TSM

Giverny Capital Inc. reduced its position in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) by 55.0% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,655 shares of the semiconductor company’s stock after selling 4,470 shares during the period. Giverny Capital Inc.’s holdings in Taiwan Semiconductor Manufacturing were worth $1,746,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Fisher Asset Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after buying an additional 313,773 shares in the last quarter. Van ECK Associates Corp grew its position in Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after buying an additional 1,750,824 shares in the last quarter. Bank of America Corp DE increased its stake in Taiwan Semiconductor Manufacturing by 6.5% in the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after acquiring an additional 966,926 shares during the last quarter. Coatue Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.9% in the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after acquiring an additional 556,988 shares during the last quarter. Finally, Janus Henderson Group PLC increased its stake in Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock worth $2,497,638,000 after acquiring an additional 594,780 shares during the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC is developing a three-hectare laboratory aimed at speeding supplier validation and addressing its advanced-packaging bottleneck. Because the facility is intended to improve production efficiency rather than add another multibillion-dollar fab, investors may view it as a relatively capital-efficient way to support growing AI-chip demand. TSMC Jumps as a Three-Hectare Lab Attacks Its Packaging Bottleneck
• Positive Sentiment: Goldman Sachs says the AI spending cycle may still be in its early stages, supporting the outlook for TSMC’s leading-edge manufacturing and packaging businesses. Goldman Sachs Says the AI Trade Is Barely Started
• Positive Sentiment: Citi identified TSMC as a stock to watch if Apple’s next premium iPhones, including a potential foldable model, command higher prices. More expensive devices could support Apple’s component spending and TSMC’s high-end chip demand. Apple’s New Foldable iPhone Could Cost $2,000
• Positive Sentiment: Coverage points to rising demand for specialized cleaning chemicals and other materials required by advanced AI-chip fabs, reinforcing the view that TSMC’s strong margins are supported by a broad semiconductor supply chain. TSMC’s 67.7% Margin Now Needs Twice the Cleaning Chemistry
• Positive Sentiment: Analyst commentary describes TSMC as a “picks-and-shovels” beneficiary of the AI buildout and argues that its customer diversification and manufacturing position may make it more attractive than many major technology stocks. TSMC Is a Better Buy Than Any of the Magnificent Seven Stocks
• Neutral Sentiment: Senior Vice President Shu-Hua Fang disclosed a purchase of 2,000 shares, increasing personal ownership by 32.23%. The insider buying is supportive sentiment, though the transaction was disclosed well after the purchase and is small relative to TSMC’s market value. SEC insider trading filing
• Negative Sentiment: One valuation analysis estimates TSMC may be about 9% above fair value, while its planned investments in Arizona and Europe increase capital requirements. Investors may therefore remain sensitive to execution risks, returns on new capacity, and any slowdown in AI spending. TSMC Could Be 9% Above Fair Value As Capex Plans Grow

Taiwan Semiconductor Manufacturing Price Performance

Shares of Taiwan Semiconductor Manufacturing stock opened at $429.07 on Monday. The firm has a market capitalization of $2.23 trillion, a PE ratio of 30.96, a price-to-earnings-growth ratio of 0.98 and a beta of 1.39. 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 12 month low of $237.90 and a 12 month high of $479.00. The business’s 50-day moving average price is $420.63 and its 200-day moving average price is $398.18.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results 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 return on equity of 39.25% and a net margin of 50.31%. Sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.52 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm 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 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 21.43%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 1,000 shares of the business’s stock in a transaction on Tuesday, July 21st. The stock was acquired at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the transaction, the vice president directly owned 30,269 shares in the company, valued at approximately $2,243,840.97. This represents a 3.42% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Lipen Yuan acquired 350 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The shares were bought at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the purchase, the vice president directly owned 2,000 shares of the company’s stock, valued at approximately $147,160. The trade was a 21.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 19,512 shares of company stock worth $1,450,270 over the last 90 days. Company insiders own 1.11% of the company’s stock.

Wall Street Analyst Weigh In

TSM has been the subject of a number of research analyst reports. Sanford C. Bernstein lifted their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. TD Cowen upped 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. Bank of America raised their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, DA Davidson raised their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $523.22.

Taiwan Semiconductor Manufacturing Company 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.