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Is Nancy Pelosi Making a Big Bet on Taiwan Semi (TSM) Stock?

Editor’s note: This article was updated on Sept. 7 to clarify that Speaker Nancy Pelosi also met with other semiconductor leaders during her visit.

  • Speaker Nancy Pelosi recently met with Taiwan Semiconductor (TSM) Chairman Mark Liu.
  • In Taiwan, the two discussed the CHIPS and Science Act.
  • Shares of TSM stock are down over 30% year to date.
TSM stock - Is Nancy Pelosi Making a Big Bet on Taiwan Semi (TSM) Stock?

Source: Sundry Photography / Shutterstock.com

Taiwan Semiconductor (NYSE:TSM) stock is in full focus following Speaker Nancy Pelosi’s visit with Chairman Mark Liu and other industry leaders. In Taiwan, the two discussed the $280 billion CHIPS and Science Act, which includes $52 billion in funding for the semiconductor industry. The act encourages chipmakers, like TSM, to build foundries in the U.S. It will also provide a four-year, 25% tax credit as an incentive, as well as the authorization of grants and loans. TSM is currently in the process of building a plant in Arizona that is expected to go online in 2024.

Pelosi’s visit to Taiwan angered China, as the country claims Taiwan as its own territory. Chinese government spokeswoman Hua Chunying added that consequences would result:

The measures in question will be firm, vigorous and effective, and the U.S. side and Taiwan independence forces will continue feeling them.

In response, China has also planned several live-fire drills in close proximity to Taiwan’s coast. These drills will take place as close as 10 miles from Taiwan’s coast. Taiwan states that this area is part of its territorial waters.

So, does Pelosi have a stake in TSM stock? Let’s get into the details.

Is Nancy Pelosi Betting on TSM Stock?

According to Quiver Quant, Pelosi does not own shares of TSM stock. However, she does own a significant stake in AllianceBernstein (NYSE:AB). As an asset management firm, AllianceBernstein owns shares of stock in several thousand companies. One of these companies is Taiwan Semiconductor.

As of the first quarter, the firm owned 1.46 million shares of TSM and added 225,968 shares during the quarter. In total, AB owns 3,260 positions, with TSM as its 298th largest position. Pelosi’s AB stake shouldn’t be regarded as overly controversial due to AllianceBernstein’s holdings in thousands of companies. Furthermore, outperformance by TSM would barely move the needle on AB since it accounts for 0.06% of AB’s overall portfolio.

There is concern that China may take over TSM in the event of an invasion. However, Liu sought to quench those fears, explaining that “nobody can control [Taiwan Semiconductor] by force.” He also added that TSM’s facilities would be “inoperable” if taken by force due to its “sophisticated manufacturing facilities.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/is-nancy-pelosi-making-a-big-bet-on-taiwan-semi-tsm-stock/.

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