Banque Pictet & Cie SA has adjusted its investment in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), decreasing its shareholding by 0.5% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm now holds 554,944 shares of TSMC after selling 3,006 shares within the quarter. This adjustment positions TSMC as the 13th largest investment in Banque Pictet’s portfolio, valued at approximately $154.78 million at the end of September 2023.
Several other institutional investors have also made recent changes to their holdings in TSMC. For instance, Bank of America Corp DE increased its stake by 0.8% in the second quarter, now owning 14,805,720 shares valued at $3.35 billion after acquiring an additional 115,158 shares. Jennison Associates LLC notably boosted its investment by 26.7%, owning 12,046,792 shares worth $2.73 billion following a purchase of 2,537,760 shares.
Alliancebernstein L.P. expanded its position by 18%, bringing its total to 10,457,800 shares valued at $2.37 billion. WCM Investment Management LLC and Sands Capital Management LLC also increased their holdings by 3.3% and 6.5%, respectively, with their shares currently worth $2.30 billion and $1.94 billion. Collectively, institutional investors now own 16.51% of TSMC’s stock.
Stock Performance and Dividend Increase
On October 13, 2023, TSMC shares opened at $303.77. The company boasts a healthy financial profile with a debt-to-equity ratio of 0.19 and a current ratio of 2.69. Over the past year, TSMC’s stock has reached a low of $134.25 and a high of $313.98. Its market capitalization currently stands at $1.57 trillion, with a price-to-earnings (P/E) ratio of 31.16.
In addition to its stock performance, TSMC has announced a quarterly dividend of $0.9678 per share, a notable increase from the previous amount of $0.83. This dividend will be paid on April 9, 2024, to investors on record as of March 17, 2024. The annualized dividend now amounts to $3.87, yielding approximately 1.3%.
Analyst Outlook and Market Sentiment
Wall Street analysts have expressed positive expectations for TSMC’s future performance. UBS Group set a price target of $330.00, while Needham & Company LLC reaffirmed a “buy” rating with a target of $360.00. Other firms, including Barclays and Citigroup, have also issued favorable ratings, citing TSMC’s significant role in the semiconductor supply chain.
Recent news highlights have contributed to a positive sentiment surrounding TSMC. The U.S. government granted an annual license allowing TSMC to export chipmaking equipment to its facility in Nanjing, China, aiding in local production efforts. Furthermore, strong demand from Nvidia for AI-related chips is expected to boost wafer demand for TSMC, enhancing revenue visibility.
Despite some neutral assessments regarding the company’s short-term performance, analysts agree that TSMC’s competitive position in the semiconductor industry remains robust. The firm is recognized as a key player in the AI supply chain, with many industry experts forecasting continued growth as technological advancements unfold.
As Taiwan Semiconductor Manufacturing continues to navigate the complexities of the semiconductor market, its recent activities reflect both strategic adjustments and a commitment to maintaining its leadership position in the industry.
