In the third quarter of 2025, Third Point LLC, led by Dan Loeb, cut its position in Taiwan Semiconductor Manufacturing by 23%. This reduction came as geopolitical frictions between the United States and China intensified, heightening concerns over cross-strait semiconductor supply chains. Despite the stake trimming, Third Point remains one of TSM’s top 10 shareholders, reflecting continued confidence in the company’s long-term prospects even as macro-political headwinds grow.

TSM reported net sales of $33.1 billion in Q3, a year-over-year increase of 30.3%, driven by surging demand for advanced logic chips from data-center and smartphone customers. Gross margin expanded by 1.2 percentage points to 57.8%, underscoring the pricing power of its 5-nanometer and 7-nanometer nodes. The board approved a 20% dividend hike, the fifth increase in three years, translating to an annualized payout of $0.39 per share and reflecting strong free cash flow generation.

TSM holds a 72% share of the global foundry market, with its fabrication facilities running at full capacity on orders from Nvidia, Qualcomm, Apple and other major AI customers. Volume production of 2-nanometer chips commenced in October at its Kaohsiung Fab 22, and the company has fully sold out its initial capacity. Goldman Sachs raised its price target by 35%, citing a potential 48% earnings growth in 2025 and forecasting that 2-nanometer capacity could double by end-2026, reinforcing TSM’s role as the linchpin of the AI hardware ecosystem.