TSMC Exits Arm With $231 Million Stake Sale as Wells Fargo Raises Target to $220
TSMC sold its remaining 1.11M Arm shares at $207.65 each for $231M, exiting its original $100M position and trimming retained earnings by $174M. Meanwhile, Wells Fargo lifted its price target from $175 to $220 and OpenAI’s user and revenue misses fueled a 6.3% Arm share slide.
1. TSMC Exits Arm Stake
Taiwan Semiconductor sold 1.11 million Arm shares at $207.65 apiece for $231 million, fully divesting its position and exiting an original $100 million purchase from Arm’s 2023 IPO.
2. Earnings Impact
The disposal cut TSMC’s retained earnings by $174 million, underscoring the parent’s portfolio trimming while refocusing on core foundry operations.
3. Wells Fargo Upgrade
Wells Fargo raised its price target on Arm stock from $175 to $220 and maintained an Overweight rating, signaling a positive outlook on the chip designer’s growth prospects.
4. OpenAI Miss and Share Slide
Arm shares sank 6.3% after OpenAI reported user and revenue shortfalls that stoked concerns over AI infrastructure demand, dragging down related AI stocks.