Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock: Contravisory Investment Management Inc. Decreases Stake

Contravisory Investment Management Inc. trimmed its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) by 17.2% in the 3rd quarter, Holdings Channel.com reports. The institutional investor owned 34,560 shares of the semiconductor company’s stock after selling 7,198 shares during the period. Taiwan Semiconductor Manufacturing makes up about 2.0% of Contravisory Investment Management Inc.’s investment portfolio, making the stock its 3rd biggest position. Contravisory Investment Management Inc.’s holdings in Taiwan Semiconductor Manufacturing were worth $15,766,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Tiger Global Management LLC raised 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 purchasing an additional 1,839,600 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after acquiring an additional 1,313,917 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Taiwan Semiconductor Manufacturing by 330.0% in the fourth quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock worth $481,111,000 after purchasing an additional 1,215,035 shares in the last quarter. Fundsmith LLP bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $548,465,000. Finally, Assenagon Asset Management S.A. acquired a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter worth $490,461,000. Institutional investors own 16.51% of the company’s stock.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts and investors expect robust quarterly results, with estimates pointing to approximately $46.7 billion in revenue and $23.4 billion in profit. Recent revenue acceleration, pricing power and capacity expansion could support stronger-than-expected 2027 guidance. TSMC Q3 earnings expectations
• Positive Sentiment: AI infrastructure demand continues to surprise to the upside, while TSMC retains a dominant position in advanced chip manufacturing. Its customer relationships, roughly 73% foundry share and about 90% share in advanced chips strengthen the long-term growth case. TSMC strong buy analysis
• Positive Sentiment: Erste Group raised its TSMC EPS forecasts to $16.92 for fiscal 2026 and $22.26 for fiscal 2027, above the cited current-year consensus of $16.56. Analyst estimate revisions
• Neutral Sentiment: The October 15 earnings release is the immediate catalyst. Strong results and guidance could validate the AI investment thesis, while any sign of slowing demand, supply constraints or weaker margins could trigger volatility. TSMC earnings catalyst
• Negative Sentiment: TSMC’s shares have become more demanding after a major AI-driven run, raising questions about whether cash flow can justify the valuation. Analysts also warn that heavy capital expenditures could pressure free cash flow and leave little room for an earnings miss. TSMC valuation and cash-flow analysis
• Negative Sentiment: Profit-taking across semiconductor-equipment stocks after a strong year shows that the broader AI trade is vulnerable to consolidation, which could weigh on TSMC despite favorable fundamentals. Semiconductor sector profit-taking

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE:TSM traded up $0.99 during trading on Tuesday, reaching $445.34. The stock had a trading volume of 8,548,796 shares, compared to its average volume of 13,022,878. The business has a fifty day moving average price of $433.89 and a 200-day moving average price of $415.05. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a market cap of $2.31 trillion, a PE ratio of 32.13, a PEG ratio of 1.00 and a beta of 1.37. Taiwan Semiconductor Manufacturing Company Ltd. has a 1-year low of $266.82 and a 1-year high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The firm had revenue of $39.89 billion for the quarter. On average, equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share 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. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.

Insider Activity

In related news, VP Lipen Yuan acquired 1,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, with a total value of $74,500.00. Following the transaction, the vice president owned 6,000 shares of the company’s stock, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Bor-Zen Tien acquired 3,000 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was purchased at an average cost of $74.39 per share, with a total value of $223,170.00. Following the completion of the purchase, the vice president directly owned 4,000 shares of the company’s stock, valued at approximately $297,560. This 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 in the last quarter. Insiders own 1.11% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently commented on TSM shares. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 6th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Finally, DA Davidson raised their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Three research 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 company’s stock. According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing 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.