Analyst Trims His Taiwan Semiconductor (TSM) Stake Amid a New 'Concern'

We recently published 10 Stocks Wall Street is Watching Heading into October. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the stocks Wall Street is watching.

Steve Weiss, chief investment officer and founder of Short Hills Capital Partners, said in a recent program on CNBC that he trimmed his position in Taiwan Semiconductor amid certain concerns. Here is what worries the analyst about the semiconductor company:

“It’s still my largest position. It just gotten too big. I bought it early, owned it for a number of years. But the incongruity in the market today is that you see the defense stocks moving up. And why? Because we’re increasing our missile production. Part of that’s replenishment from the wars that we’ve been sending to in Ukraine and helping Israel out. But the primary reason that’s being attributed to the increase in production is potential for a conflict in China. So the incongruity here is that Taiwan semi with most of their operations in Taiwan is at ground zero for that conflict yet the stock is uptight. That continues to be a concern of mine. Now in terms of the onshoring for like Taiwan semi and and Micron they’re having their own issues because the issues are is that they when they announced these plans these multi-billion dollar plans to build here they had assumed that they’d be able to export from this country to other countries their products. Now they’re downsizing those plans because they won’t be able to because those will be tariffed also on an outgoing basis.”

However, Weiss said Taiwan Semi remains his largest position.

Brown Advisory Global Leaders Strategy stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second quarter 2025 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”

While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.