May 21 – Taiwan Semiconductor Manufacturing Company (NYSE:TSM) drew attention after Cathie Wood’s Ark Invest made sizable additions to its position, reflecting a shift in the firm’s semiconductor strategy.
Ark Innovation ETF (ARKK) bought 27,099 TSM shares, while Ark Next Generation Internet ETF added 16,172 shares, collectively investing roughly $8.4 million in the contract chipmaker.
Wood’s funds have trimmed exposure to some high-growth technology names in recent months but are increasing their stake in TSM, underscoring confidence in the company’s pivotal role supplying leading U.S. firms in artificial intelligence and consumer electronics.
TSM’s partnerships with chip designers such as Qualcomm highlight its integral position in the global AI supply chain. With geopolitical tensions easing somewhat, investors may be eyeing TSM’s cross-border manufacturing capabilities as an opportunity to tap sustained demand for advanced semiconductors.
Ark Invest also expanded its holdings in Nextdoor Holdings and Blade Air Mobility, while modestly reducing its position in UiPath (NYSE:PATH). This rebalancing reflects Wood’s broader strategy of backing established leaders that stand to benefit from secular trends in AI, digital services and next-generation mobility.
Based on the one year price targets offered by 17 analysts, the average target price for Taiwan Semiconductor Manufacturing Co Ltd is $216.39 with a high estimate of $265.34 and a low estimate of $119.37. The average target implies a upside of +11.86% from the current price of $193.45.
Based on GuruFocus estimates, the estimated GF Value for Taiwan Semiconductor Manufacturing Co Ltd in one year is $206.18, suggesting a upside of +6.58% from the current price of $193.45.
This article first appeared on GuruFocus.