Chilton Investment Co. Inc. significantly increased its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) by an impressive 195.1% during the third quarter of 2023. According to the firm’s latest filing with the SEC, Chilton now holds 3,285 shares of the semiconductor giant, having purchased an additional 2,172 shares during this period. The value of Chilton’s holdings in TSMC has reached approximately $917,000.
Other institutional investors have also adjusted their positions in TSMC, reflecting a broader trend of confidence in the company. Fisher Asset Management LLC raised its stake by 1.0%, acquiring an additional 168,171 shares, bringing its total to 17,833,127 shares valued at around $4.98 billion. Similarly, Massachusetts Financial Services Co. MA increased its holdings by 3.6%, now owning 15,759,419 shares worth approximately $4.4 billion.
Bank of America Corp DE boosted its position by 0.9%, adding 130,173 shares for a total of 14,935,893 shares, valued at about $4.17 billion. Jennison Associates LLC also lifted its holdings in TSMC by 4.5%, bringing its total to 12,591,542 shares valued at roughly $3.52 billion. Finally, AllianceBernstein L.P. increased its stake by 2.2%, owning 10,687,037 shares worth about $2.98 billion. Collectively, institutional investors now own 16.51% of TSMC’s stock.
Analysts Update Ratings and Price Targets
TSMC has been the subject of various research reports recently, with analysts adjusting their ratings and price targets. Freedom Capital upgraded TSMC to a “strong-buy” rating in a report dated January 15, 2024. Meanwhile, Barclays raised its target price for TSMC from $380.00 to $450.00, assigning the stock an “overweight” rating in a report on January 16, 2024.
Conversely, Weiss Ratings downgraded TSMC from a “buy (b-)” to a “hold (c+)” rating on March 5, 2024. DA Davidson also elevated TSMC to a “strong-buy” rating in a report released on February 13, 2024. UBS Group set a price objective of $330.00 on TSMC as of December 7, 2023. Currently, four investment analysts rate TSMC as a Strong Buy, nine give it a Buy rating, while two analysts assign a Hold rating, leading to an average rating of “Buy” with a target price of $391.43, according to MarketBeat.
Market Performance and Outlook
As of Monday, TSMC’s stock opened at $338.22. Over the past year, the stock has seen a low of $134.25 and a high of $390.20. The company has a market capitalization of approximately $1.75 trillion and a price-to-earnings (P/E) ratio of 31.76. In terms of liquidity, TSMC has a current ratio of 2.62 and a quick ratio of 2.42.
The latest earnings results, released on February 26, 2024, reported earnings of $3.11 per share, with a net margin of 45.13% and a return on equity of 34.89%. Revenue for the quarter stood at $30.65 billion. Analysts predict that TSMC will post earnings of $9.20 per share for the current year.
In a recent announcement, TSMC declared a quarterly dividend of $0.9503 per share, payable on July 9, 2024. Shareholders on record as of June 11, 2024, will receive this dividend, marking an annualized dividend of $3.80 and a yield of 1.1%.
Taiwan Semiconductor Manufacturing Company is a prominent player in the semiconductor industry, known for its wafer fabrication services. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits for various clients, including fabless companies and integrated device manufacturers. Its technology portfolio includes logic and mixed-signal process technologies, specialty processes for radio-frequency, power management, and advanced nodes used in mobile and AI applications.
As TSMC continues to grow and adapt to market demands, investor interest remains high, reflecting confidence in its strategic importance within the global semiconductor landscape.