Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.8% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price traded down 1.8% on Monday . The stock traded as low as $398.19 and last traded at $404.0720. 14,594,813 shares were traded during mid-day trading, an increase of 4% from the average session volume of 14,027,349 shares. The stock had previously closed at $411.68.

More Taiwan Semiconductor Manufacturing News

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: Wall Street commentary says TSMC stands to benefit from the next phase of AI development, with deepening supply tightness giving the company more pricing power and leverage in advanced chip manufacturing. AI’s Next Phase Plays Into TSMC’s Hands
• Positive Sentiment: Analysts continue to view Taiwan Semiconductor as a buy, supporting the case that institutional sentiment remains favorable for the stock. Taiwan Semiconductor Manufacturing Company Ltd. Receives Consensus Recommendation of Buy from Analysts
• Positive Sentiment: Long-term investor pieces argue the semiconductor market could more than double by 2030, with TSMC positioned as one of the best ways to play that expansion. The semiconductor market could double to more than 1.5 trillion by 2030. Here’s the best chip stock to buy
• Positive Sentiment: TSMC also received a small insider purchase from CEO Che-Chia Wei, which investors often read as a sign of confidence in the company’s outlook. CEO Che-Chia Wei insider transaction
• Neutral Sentiment: Broader market coverage says global investors are increasingly focusing on Asia for the next leg of equity gains, which can provide a supportive backdrop for TSMC without being company-specific. Asia emerges as primary target for global equity bulls seeking next growth leg
• Negative Sentiment: One bearish note warned that TSMC’s popularity as a crowded AI trade could make it vulnerable if investors decide to de-risk from semiconductor exposure, especially amid geopolitical and capital-spending concerns. TSMC Has Been The Market’s No-Brainer Trade — And That Makes It Vulnerable

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. TD Cowen raised their price target on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a research report on Friday, January 16th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Finally, DA Davidson reaffirmed a “buy” rating and set a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a 50-day moving average of $361.06 and a 200-day moving average of $330.36. The firm has a market cap of $2.09 trillion, a price-to-earnings ratio of 33.62, a price-to-earnings-growth ratio of 1.20 and a beta of 1.39. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.32 and a current ratio of 2.51.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%.The business had revenue of $30.65 billion for the quarter. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 24.96%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 1,000 shares of the company’s stock in a transaction that occurred on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the transaction, the vice president owned 9,051 shares in the company, valued at $506,222.43. This represents a 12.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last quarter, insiders purchased 1,346 shares of company stock valued at $78,185. 1.11% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Quattro Advisors LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $27,000. Stephens Consulting LLC grew its stake in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 41 shares in the last quarter. Evolution Wealth Management Inc. grew its stake in Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC grew its stake in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.