Driehaus Capital Management 13F: Cuts TSM Stake by $429M

Driehaus Capital Management scaled back its investment in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) during the first half of the year. According to its latest Form 13F filing with the SEC for the period ending May 15, 2026, the fund cut its position by 41.5%. These filings are backward-looking and show holdings at a specific point in time, meaning they may not reflect the fund's exact current portfolio.

Driehaus Capital Sells Off Shares

During the reporting period, Driehaus Capital Management sold 898,674 shares of the semiconductor powerhouse. That left the investment firm with 1,264,890 shares of Taiwan Semiconductor, down from its prior count of 2,163,564 shares. The remaining stake is valued at approximately $604.07 million.

Taiwan Semiconductor Stock Flirts With Its Peak

Taiwan Semiconductor shares traded at $477.57 on Saturday. The stock has enjoyed a powerful run, trading near the top of its 52-week range of $266.82 to $487.47. It is also trading comfortably above its longer-term momentum indicators, including its 50-day moving average of $434.48 and its 200-day moving average of $394.48. The company's market capitalization currently sits at an impressive $2.19 trillion.

Strong Growth Drives Earnings

Taiwan Semiconductor's financial engine continues to hum. The company reported a massive revenue of $4.44 trillion (New Taiwan Dollars) with a revenue growth rate of 36% year-over-year. Its net profit margin stands at an exceptional 49.92%, helping drive a return on equity of 39.97%. The company is highly profitable, boasting earnings per share of $15.43 and a reasonable price-to-earnings ratio of 27.37. Looking ahead, its forward P/E ratio drops to 18.35, and its next earnings announcement is scheduled for October 15, 2026.

Taiwan Semiconductor Dividend Details

In addition to capital gains, the company offers a modest dividend to its investors. Taiwan Semiconductor's current dividend yield sits at 0.85%. The company maintains a healthy dividend payout ratio of 25.44%, indicating it retains plenty of cash to reinvest back into its cutting-edge chip fabrication plants while still rewarding shareholders.

Executives Add to Their Positions

Corporate insiders have been showing confidence in the company's direction with several recent purchases. Vice President Bor-Zen Tien bought 1,000 shares on June 29, 2026, at an average price of $76.64, and followed up the next day on June 30, 2026, by purchasing another 1,000 shares at $75.70. Earlier in the month, on June 22, 2026, Vice President Lipen Yuan acquired 1,000 shares at $79.19. Meanwhile, Vice President Tzu-Sou Chuang had a transaction involving 500,000 shares on June 24, 2026, though it carried no cash value.

Analysts Set New Price Targets

Wall Street analysts remain overwhelmingly positive on the stock. On October 16, 2026, DA Davidson maintained a Buy rating and set a $500.00 price target. The day before, on October 15, 2026, Needham kept its Buy rating and raised its price target from $530.00 to $560.00. Barclays also lifted its price target to $665.00 with an Overweight rating on October 6, 2026. Out of 20 analyst opinions, the stock holds a consensus strong buy rating, with a mean price target of $584.39 and a high target stretching up to $1,000.00.

Global Semiconductor Powerhouse

Taiwan Semiconductor is the world's largest dedicated independent semiconductor foundry. It manufactures, packages, and tests integrated circuits used in high-performance computing, smartphones, automotive technology, and smart devices. Because virtually every major tech giant relies on its factories, the company's performance is often seen as a key health indicator for the global technology sector.

Looking Forward

While Driehaus Capital chose to lock in profits on a portion of its holdings, the underlying fundamentals of Taiwan Semiconductor remain remarkably strong. Investors will want to keep a close eye on the company's next quarterly earnings report on October 15, 2026, as well as subsequent institutional filings to see if other major funds are following Driehaus's lead or buying up the shares instead.