8 ETFs Cut Taiwan Semiconductor (TSM) Holdings on Thursday
π Eight ETFs sold TSM shares on Thursday, resulting in a net outflow of $81.0 million and reversing earlier buying trends.
π CGGO led the selling with a $17.0 million reduction, while JGLO cut its position by 21.89% to $16.2 million.
π° TSM reported trailing-12-month revenue of $156.42 billion, up 36.1% year-over-year with a gross margin of 65.1%.
π The company maintains a high GF Score of 98 and trades at a P/E ratio of 24.12 with a market cap of $1.89 trillion.
β οΈ ETF activity has been negative for two straight days, contrasting with the net buying seen on Monday and Tuesday.
π As the world's largest dedicated semiconductor foundry, TSM manufactures chips designed by its customers rather than selling proprietary products.
Bullish Signals
- Taiwan Semiconductor reported trailing-12-month revenue of $156.42 billion, a significant 36.1% increase over the previous year.
- The company maintains exceptional profitability with a gross margin of 65.1% and a net margin of 51.4%.
- TSM holds a high GF Score of 98, indicating strong financial health relative to its peers in the semiconductor industry.
Risk Factors
- Eight ETFs reduced their holdings on Thursday, creating a net outflow of $81.0 million that reversed earlier buying.
- The stock has experienced two consecutive days of net selling by funds, suggesting potential short-term sentiment deterioration.
Full Analysis
Eight exchange-traded funds reduced their holdings of Taiwan Semiconductor Manufacturing Company (TSM) last Thursday, led by the CGGO fund which sold $17.0 million in shares. This activity contributed to a net outflow of $81.0 million for the day, marking the second consecutive day of negative ETF flow after a $19.1 million net sale on Wednesday. While five funds added shares, the selling pressure from major holders like JGLO and ARKQ reversed the significant buying trend observed earlier in the week.
Taiwan Semiconductor remains the world's largest dedicated semiconductor foundry, generating revenue for customers rather than selling its own finished products. The company reported trailing-12-month revenue of $156.42 billion, representing a 36.1% increase over the previous year, with robust gross margins of 65.1% and net margins of 51.4%. Despite these strong fundamentals, the stock currently trades at a price-to-earnings ratio of 24.12 and a GF Value of $375.85 compared to its current market price of $406.13.
The recent shift in ETF sentiment suggests investors are closely monitoring whether this two-day selling streak extends further or if the buying momentum from Monday and Tuesday returns. The stock sits within the Technology sector's Semiconductors industry with a massive market capitalization of $1.89 trillion, maintaining a GF Score of 98 and offering a dividend yield of 1.02%. Investors are watching to see if the recent net selling trend persists or normalizes as funds adjust their positions.