Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Franchise GP Ltd Cuts Holdings

Franchise GP Ltd lowered its stake in shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) by 26.3% during the third quarter, Holdings Channel reports. The fund owned 32,460 shares of the semiconductor company’s stock after selling 11,580 shares during the quarter. Taiwan Semiconductor Manufacturing comprises 6.3% of Franchise GP Ltd’s portfolio, making the stock its 8th biggest holding. Franchise GP Ltd’s holdings in Taiwan Semiconductor Manufacturing were worth $14,808,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Tiger Global Management LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares in the last quarter. Invesco Ltd. raised its position in shares of Taiwan Semiconductor Manufacturing by 1.1% in the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock valued at $1,131,025,000 after buying an additional 40,842 shares during the last quarter. Sei Investments Co. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after buying an additional 274,389 shares during the period. T. Rowe Price Investment Management Inc. lifted its stake in shares of 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 valued at $636,077,000 after buying an additional 1,313,917 shares during the period. Finally, Hsbc Holdings PLC boosted its position in Taiwan Semiconductor Manufacturing by 40.5% during the fourth quarter. Hsbc Holdings PLC now owns 1,865,064 shares of the semiconductor company’s stock worth $569,227,000 after acquiring an additional 537,539 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

Analyst Upgrades and Downgrades

Several research analysts have weighed in on TSM shares. Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. DA Davidson restated a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday. Stifel Nicolaus started coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price objective for the company. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, TD Cowen upped their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research note on Friday, July 17th. 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. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

NYSE:TSM opened at $413.15 on Friday. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a market cap of $2.14 trillion, a P/E ratio of 26.59, a P/E/G ratio of 0.87 and a beta of 1.37. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $266.82 and a fifty-two week high of $487.47. The firm’s 50 day moving average is $434.71 and its two-hundred day moving average is $417.11.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business had revenue of $46.87 billion for the quarter. Analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.65 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders 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 yield of 1.1%. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 24.96%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin acquired 2,000 shares of the company’s stock in a transaction dated Sunday, July 19th. The stock was bought at an average price of $71.71 per share, with a total value of $143,420.00. Following the completion of the transaction, the vice president directly owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. The trade was a 7.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Bor-Zen Tien purchased 3,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 21st. The shares were acquired at an average cost of $74.39 per share, with a total value of $223,170.00. Following the completion of the transaction, the vice president 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 have acquired a total of 16,043 shares of company stock valued at $1,185,746 over the last ninety days. Corporate insiders own 1.11% of the company’s stock.

Taiwan Semiconductor Manufacturing Company 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.