Banque Pictet & Cie SA has reported a minor decrease in its holdings of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), now valued at approximately $154.78 million. According to a recent filing with the Securities and Exchange Commission (SEC), the bank reduced its share count by 3,006 shares during the third quarter, bringing its total to 554,944 shares. This adjustment reflects a 0.5% decrease and positions Taiwan Semiconductor as the bank’s 13th largest investment, comprising 0.9% of its overall portfolio.
Several other institutional investors have also altered their positions in Taiwan Semiconductor. Bank of America Corp DE increased its stake by 0.8% in the second quarter, acquiring an additional 115,158 shares, resulting in a total of 14,805,720 shares valued at $3.35 billion. Similarly, Jennison Associates LLC boosted its holdings by 26.7%, owning 12,046,792 shares worth $2.73 billion after purchasing 2,537,760 shares. Other notable investors include AllianceBernstein L.P., which increased its position by 18.0%, and Sands Capital Management LLC, which raised its stake by 6.5%.
As institutional investors collectively hold 16.51% of Taiwan Semiconductor’s stock, the company continues to attract significant interest from major financial entities.
Performance and Future Outlook
On November 14, 2023, Taiwan Semiconductor released its latest quarterly earnings, reporting earnings per share of $14.32. The company boasts a market capitalization of $1.57 trillion, a price-to-earnings (P/E) ratio of 31.16, and a robust return on equity of 34.34%. Its stock has seen a 52-week range from $134.25 to $313.98, reflecting its volatility and potential for growth.
Analysts predict that Taiwan Semiconductor will post a total earnings per share of 9.2 for the current fiscal year, indicating optimism regarding the company’s financial health. The company has also announced a quarterly dividend of $0.9678 per share, payable on April 9, 2024, a significant increase from its previous dividend of $0.83. This adjustment results in an annualized dividend of $3.87 and a yield of 1.3%, with a payout ratio of 25.85%.
Analyst Ratings and Market Sentiment
Market sentiment surrounding Taiwan Semiconductor remains predominantly positive. Analysts from UBS Group have set a price target of $330.00, while Needham & Company LLC has reaffirmed a “buy” rating with a price objective of $360.00. Other firms, including Barclays and Citigroup, have also expressed bullish outlooks, reflecting a consensus rating of “buy” with an average target price of $355.00.
Recent developments, including the granting of an annual license by the U.S. to allow Taiwan Semiconductor to transport chip-making equipment to its Nanjing facility, have further bolstered investor confidence. This move is expected to maintain local production capacity in China, thus mitigating operational uncertainties.
In addition, heightened demand for AI chips, particularly from companies like Nvidia, has prompted expectations for increased wafer demand at Taiwan Semiconductor’s advanced nodes. As the company continues to make progress in mass production of 2nm chips, it solidifies its position as a leader in the semiconductor industry.
Taiwan Semiconductor Manufacturing Company, established in 1987 and headquartered in Hsinchu, Taiwan, remains a critical player in the global semiconductor supply chain, providing contract chip fabrication for various technologies and applications. Its ongoing advancements and solid investor interest suggest a promising outlook as it navigates the complexities of the semiconductor market.
