Taiwan Semiconductor Manufacturing: Billionaires Quietly Building Stakes Amid Record Earnings Growth

Billionaires David Tepper, Stanley Druckenmiller, and George Soros have been quietly increasing their stakes in Taiwan Semiconductor Manufacturing (TSM), a leading contract chipmaker that powers Nvidia's GPUs, Apple's iPhones, and servers fueling AI adoption. TSM has surged 40% in the past year, with record-breaking earnings growth, and its valuation remains near sector averages, making it a compelling blend of growth and relative value.

Billionaires David Tepper, Stanley Druckenmiller, and George Soros have quietly increased their stakes in Taiwan Semiconductor Manufacturing (TSM), a leading contract chipmaker that powers Nvidia's GPUs, Apple's iPhones, and servers fueling AI adoption. TSM has surged 40% in the past year, with record-breaking earnings growth, and its valuation remains near sector averages, making it a compelling blend of growth and relative value.

Taiwan Semiconductor Manufacturing reported earnings of $2.47 per share for the second quarter of 2025, exceeding analysts' expectations of $2.13. The company's revenue reached $30.07 billion, marking a 44.4% year-over-year increase [1]. Several brokerages have adjusted their price targets, with Susquehanna raising its target to $265.00, while maintaining a consensus "Buy" rating and an average target price of $258.33 [1].

Institutional investors have also increased their positions in TSM. In Depth Partners LLC, for instance, increased its stake by 36.1% in the first quarter, owning 73,757 shares after purchasing an additional 19,547 shares [1]. Other notable investors include DekaBank Deutsche Girozentrale, Pinnacle Investment Management Ltd., Quantbot Technologies LP, Sentry LLC, and Compound Global Advisors LLC [1]. These investments highlight the growing interest in TSM's stock among institutional investors.

TSM's stock performance has been robust, with shares trading up $2.64 during trading hours on Monday, reaching $235.63. The stock had a trading volume of 7,636,140 shares, compared to its average volume of 10,517,966 [1]. The company's market capitalization stands at $1.22 trillion, with a PE ratio of 26.87, a price-to-earnings-growth ratio of 1.11, and a beta of 1.19 [1].

Analysts have maintained a positive outlook on TSM. Needham & Company LLC, Barclays, Citigroup, and Susquehanna have all issued "Buy" ratings, with price targets ranging from $240.00 to $270.00 [1]. Wall Street Zen downgraded TSM to a "hold" rating, but four analysts still rate it as a "Buy" [1].

The billionaires' increased stakes in TSM underscore the company's strong fundamentals and growth potential. As TSM continues to power the semiconductor industry, investors should closely monitor its performance and the evolving market dynamics.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-taiwan-semiconductor-manufacturing-company-ltd-tsm-stock-position-increased-by-in-depth-partners-llc-2025-08-24/
[2] https://www.marketbeat.com/instant-alerts/filing-ameriprise-financial-inc-sells-360928-shares-of-taiwan-semiconductor-manufacturing-company-ltd-tsm-2025-08-22/