How Are Investors Perceiving Taiwan Semiconductor Manufacturing Co Ltd?

Taiwan Semiconductor Manufacturing Co Ltd: Recent Short Interest Trends

Short interest in Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) has dropped by 24.62% since the previous update. Latest exchange data shows that 25.28 million shares are currently sold short, representing just 0.49% of the total tradable shares. At the current trading pace, it would take traders an average of 2.11 days to fully cover these short positions.

Understanding Short Interest

Short interest reflects the number of shares that have been borrowed and sold but not yet repurchased or closed. Short selling involves selling shares one does not own, aiming to profit if the stock price declines. If the price drops, the seller can buy back shares at a lower cost; if the price rises, losses occur.

Monitoring short interest is valuable because it offers insight into how investors feel about a stock. Rising short interest often signals growing pessimism, while a decline may indicate increasing optimism among traders.

Short Interest Over the Past Three Months

The chart above illustrates that the percentage of TSMC shares sold short has decreased since the last report. While this reduction does not guarantee an imminent price increase, it does indicate that fewer shares are being targeted by short sellers at this time.

How TSMC's Short Interest Compares to Its Peers

Analysts and investors often compare a company to its peers—businesses with similar industry focus, size, age, and financial structure—to assess performance. Peer groups can be identified through regulatory filings or independent analysis.

This means TSMC currently has lower short interest compared to most similar companies.

TSMC Stock Snapshot