Taiwan Semiconductor (TSM) – Get a free report Shares edged higher on Tuesday after billionaire investor Warren Buffett revealed a $4 billion stake in the world’s largest contract chipmaker after closing trading on Monday.
Securities and Exchange Commission filings show that Buffett’s investment firm Berkshire Hathaway BRK.B owns $4.1 billion in Taiwan Semi (TSMC) shares, or about 60.1 million shares in custody at the U.S. Securities and Exchange Commission. America of this group, as of September 30.
TSMC posted its strongest quarterly profit in two years last month, with net profit for the three months ending September of $280.9 billion on revenue of $20.23 billion, but it marks a positive record for the chip sector in 2023.
TSMC downgraded its 2022 capex forecast – a key chip and smartphone industry benchmark – to about $36 billion from summer estimates of $40 billion to $44 billion, citing supply chain The challenges and near-term outlook are milder related to the slowdown in global demand and the broader impact of restricting US high-tech chip exports to China-based companies.
Taiwan Semi is also expected to start processing some (AAPL) – Get a free report New A-series and M-series chips at the facility just completed in Arizona early next year. The group, which announced plans for the new factory in 2020, said it would cost $12 billion and create about 1,600 jobs in the US.
TSMC’s US-listed shares were marked 9.5% higher in pre-market trading at an opening price of $79.61 per share. The group’s main listing in Taiwan is marked 7.87% higher at 480.00 T$ each.
Berkshire Hathaway disclosed a number of changes to its portfolio in update 13-F filed late Monday, including a new stake in construction materials conglomerate Louisiana-Pacific Corp. (LPX) – Get a free report and Jefferies Financial Group (JEF) – Get a free report.
Investment group also cuts stakes in General Motors GM, Activision Blizzard (ATVI) – Get a free report and Kroger (KR) – Get a free report while adding Chevron (CVX) – Get a free reportMysterious oil and gas (OXY) – Get a free report and Paramount Global (PARA) – Get a free report.
Berkshire Hathaway, run by 92-year-old Buffett since 1965, posted a 20% increase in operating profit – his favorite metric – for the three months ending September, thanks in part to profits. from the railway. , utilities and energy businesses.
However, costs related to Hurricane Ian, as well as the broader weakening of the auto insurance market, hit Buffett’s Geico division, which recorded a pre-tax loss of $759 million, while his other insurers lost $962 million.
Buffett and his team made a net purchase of $3.7 billion in stock in the third quarter, including increasing his stake in Occidental Petroleum and buying back about $1.05 billion in Berkshire stock.
