First Eagle Trims Taiwan Semiconductor Stake by 2 Million

First Eagle Investment Management LLC, managed by Jean Marie Eveillard, recently executed a significant transaction involving Taiwan Semiconductor Manufacturing Company Limited ((TSM)). The hedge fund reduced its position by 2,036,189 shares.

Recent Updates on Taiwan Semiconductor Manufacturing Company Limited stock

TSMC shares have recently pulled back from record highs, sliding about $7–$9 to roughly $395–$404 as options positioning turned moderately bearish, with elevated implied volatility and stronger demand for downside protection. Despite the volatility, TSMC reported robust Q1 2026 results, declared a NT$7 dividend, and approved over US$50B in global capacity expansion, including up to US$20B for its Arizona fab, while analysts maintain Buy/Outperform ratings with price targets up to $490 tied to AI and HPC demand.

Spark’s Take on TSM Stock

According to Spark, TipRanks’ AI Analyst, TSM is a Outperform.

The score is driven primarily by exceptional profitability and a strong balance sheet, reinforced by upbeat guidance and AI/HPC-led demand. Technicals add support via a clear uptrend. Offsetting factors are a not-cheap valuation, capex-driven free-cash-flow conversion limits, and near-term margin dilution/packaging constraints highlighted on the earnings call.

To see Spark’s full report on TSM stock, click here.

More about Taiwan Semiconductor Manufacturing Company Limited

YTD Price Performance: 31.02%

Average Trading Volume: 13,503,853

Current Market Cap: $1850.9B