Addenda Capital Inc. Trims Stock Holdings in Taiwan Semiconductor Manufacturing Company Ltd. $TSM - MarketBeat

In Q2 2026, Addenda Capital Inc. reduced its stake in Taiwan Semiconductor Manufacturing Company (TSMC) by 42.1%, selling 16,105 shares while retaining 22,125 shares valued at approximately $10.6 mill... Read original →

Addenda Capital's reduction in TSMC holdings signals growing concerns over elevated semiconductor valuations, yet robust AI-driven demand continues to fuel TSMC’s financial performance. Technologically, the company’s leadership in 2-nanometer processes and EUV lithography underpins its dominance in advanced packaging and AI chip manufacturing. The $4.7 billion CMOS sensor venture with Sony expands TSMC’s footprint into new markets. However, divergent institutional behavior—such as SoftBank’s exit and Bank of Nova Scotia’s increased stake—reflects market uncertainty. Geopolitical risks, especially in the China Taiwan/ Taiwan, China context, are intensifying supply chain vulnerabilities. Competitors like NVIDIA and AMD are accelerating in-house chip development, potentially eroding TSMC’s market share. Over the next 12–24 months, a slowdown in AI compute demand could trigger a valuation correction, but TSMC’s strategic positioning in advanced manufacturing and global investments remain compelling for long-term investors.