Taiwan Semiconductor Manufacturing Company Ltd. reported a record net profit of NT$517.6 billion in its latest quarter, up 23% year-over-year. Revenue for the period reached NT$744.1 billion, a 20% increase, driven primarily by surging orders for advanced 5-nanometer and 3-nanometer chips used in artificial intelligence data centers. The foundry’s gross margin expanded to 54.3%, its highest level since 2021, reflecting strong pricing power and high utilization rates across its six fabs dedicated to cutting-edge nodes.

During the third quarter, Dupree Financial Group LLC reduced its stake in TSMC by 46.5%, selling 9,110 shares and leaving it with 10,476 shares valued at NT$97.2 million. In contrast, Heartwood Wealth Advisors LLC, Resources Management Corp CT ADV and Mid American Wealth Advisory Group Inc. each initiated new positions of roughly 350 shares apiece, signaling growing confidence among smaller asset managers. Overall, institutional ownership stands at 16.5%, down slightly from 17.2% six months earlier, suggesting a modest rebalancing as global customers seek to diversify chip supply beyond Taiwan.

TSMC declared a raised quarterly dividend of NT$6.35 per share, up 17.5% from the prior payout, marking the tenth consecutive annual increase and representing an annualized yield of 1.2% on a payout ratio of 28.6%. Following the results, five sell-side firms revised their outlooks: Goldman Sachs and Citigroup reiterated “buy” ratings with higher target prices, while Susquehanna lifted its price objective from NT$300 to NT$400. The consensus among ten analysts now stands at “moderate buy,” with an average target implying an 11% upside over the next 12 months.