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Taiwan Semiconductor (TSM) remains a critical player in the global semiconductor industry, serving as the backbone for tech giants with its advanced chip manufacturing capabilities. The company’s strategic importance, coupled with its technological leadership, attracts a wide range of investors, from value-oriented funds to growth-focused managers. This analysis examines recent portfolio adjustments by prominent investors.

Buyers:

1. Viking Global Investors (Andreas Halvorsen)
– Position Change: +799,628 shares
– Current Holdings: 4,889,247 shares ($0.81B)
– Analysis: Significant increase reflects confidence in TSM’s long-term growth amid global chip demand.

2. Tiger Global Management (Chase Coleman)
– Position Change: +606,494 shares
– Current Holdings: 4,241,474 shares ($0.70B)
– Analysis: Growth-focused bet on semiconductor industry recovery.

3. Duquesne Family Office (Stanley Druckenmiller)
– Position Change: +491,265 shares
– Current Holdings: 598,780 shares ($0.10B)
– Analysis: Macro investor capitalizing on TSM’s cyclical rebound potential.

Additional Buyers:

– Maverick Capital: +218,679 shares
– Lone Pine Capital: +104,937 shares
– AQR Capital Management: +125,277 shares
– Gotham Asset Management: NEW POSITION (1,754 shares)
– GMO: +23,926 shares
– Appaloosa: +20,000 shares
 

Sellers:

1. Fisher Asset Management (Ken Fisher)
– Position Change: -10,346,607 shares
– Remaining Holdings: 18,005,343 shares ($2.99B)
– Note: Despite the reduction, Fisher remains the largest TSM shareholder in our list.

2. Point72 Asset Management (Steve Cohen)
– Position Change: -613,050 shares
– Remaining Holdings: 1,881,880 shares ($0.31B)
– Analysis: Likely profit-taking after strong performance.

3. Pzena Investment Management (Rich Pzena)
– Position Change: -13,539 shares
– Remaining Holdings: $41,521 ($0.01B)
– Analysis: Minor trimming in a value-oriented portfolio.

Additional Sellers:
– Giverny Capital: -3,088 shares
– Wedgewood Partners: -15 shares

Unchanged:

1. Fairfax Financial Holdings (Prem Watsa)
– Maintained: 141,700 shares ($0.02B)
– Analysis: Long-term value investor holding steady.

2. Sequoia Fund
– Maintained: 696,985 shares ($0.12B)
– Note: Consistent position aligns with focused strategy.

3. Third Point (Dan Loeb)
– Maintained: 1,780,000 shares ($0.30B)
– Analysis: No change suggests continued conviction.
 

Performance Highlights:

– Technological Edge: TSM leads in advanced chip manufacturing (3nm/5nm processes)
– Geopolitical Resilience: Diversifying production to mitigate regional risks
– Valuation: Attractive relative to peers given growth prospects
 

Market Sentiment:

– Bullish Case: Buyers bet on semiconductor cycle recovery and AI-driven demand
– Bearish View: Sellers may be rotating out due to geopolitical concerns or profit-taking
– Neutral: Holders maintain positions, signaling long-term confidence
 

Strategic Position:

– Critical Supplier: Essential to Apple, NVIDIA, and other tech giants
– Growth Drivers: AI, IoT, and automotive chip demand support future revenue
– Risks: Geopolitical tensions and competition remain watchpoints
 

Final Assessment

Taiwan Semiconductor (TSM) continues to be a cornerstone holding for many top investors, reflecting its irreplaceable role in the tech ecosystem. While some investors trimmed positions, others aggressively added, highlighting divergent views on near-term risks versus long-term growth. Its technological leadership and strategic importance suggest TSM will remain a key portfolio holding for institutional investors.

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