Taiwan Semiconductor Manufacturing (TSM), or TSMC, stock fell about 3% on Friday after the chip giant said it plans to sell around 152 million shares, or about 8.1%, of Vanguard International Semiconductor through a block sale to large investors. The move will lower TSMC’s stake in Vanguard from about 27.1% to 19%.
The company said it does not plan to sell more Vanguard shares anytime soon. TSMC added that the sale is part of its plan to focus more on its main business operations.
More on The Headline
Despite the planned share sale, TSMC said its long-term relationship with Vanguard will remain unchanged. The company noted that the move will not affect its work with Vanguard, including outsourced production and GaN technology agreements.
TSMC also said it stopped having board representation at Vanguard in June 2024, showing that the two companies had already started operating more independently.
Even after Friday’s drop, TSM stock remains one of the strongest-performing chip stocks over the past year as investors continue betting on long-term AI chip demand and global semiconductor growth. The stock has gained 33% year to date and 115% in 2025.
Is TSM Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSM stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSM price target of $465 per share implies 15% upside potential.
