Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 4.5% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded up 4.5% during mid-day trading on Thursday . The company traded as high as $421.97 and last traded at $417.7710. 18,492,628 shares traded hands during trading, an increase of 31% from the average session volume of 14,112,202 shares. The stock had previously closed at $399.80.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC raised its long-term outlook for the global semiconductor market to more than $1.5 trillion by 2030, up from a prior $1 trillion estimate, citing surging demand from AI and high-performance computing. TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth
• Positive Sentiment: The company also outlined aggressive capacity expansion, including new wafer fabs and advanced packaging projects across the U.S., Japan, Germany and other markets, signaling confidence in multi-year demand. TSMC’s US$1.5t Chip Outlook Reshapes AI Supply Chain Risks And Rewards
• Positive Sentiment: Sector momentum is helping, with emerging-market and semiconductor stocks rising alongside other AI names as optimism builds around trade ties and AI hardware demand. Emerging-Market Stocks Rise as Alibaba, TSMC Join AI Hot Streak
• Positive Sentiment: TSMC’s strong recent operating updates, including solid year-over-year revenue growth, support the view that AI and high-performance computing demand remains robust. TSMC jumps 4.4% as AI-chip demand narrative and a broader semiconductor rally lift the group

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Barclays lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a report on Wednesday, April 22nd. Argus raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Finally, Zacks Research cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 4.5%

The company has a market capitalization of $2.16 trillion, a P/E ratio of 34.76, a PEG ratio of 1.16 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. The stock has a 50 day moving average price of $363.15 and a 200 day moving average price of $333.46.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 24.96%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction dated Sunday, March 22nd. The shares were bought at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the purchase, the vice president directly owned 9,051 shares of the company’s stock, valued at approximately $506,222.43. This trade represents a 12.42% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders acquired 1,346 shares of company stock worth $78,185. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Rockbridge Investment Management LCC bought a new stake in Taiwan Semiconductor Manufacturing in the 1st quarter valued at about $261,000. GC Wealth Management RIA LLC raised its stake in Taiwan Semiconductor Manufacturing by 10.7% in the 1st quarter. GC Wealth Management RIA LLC now owns 35,269 shares of the semiconductor company’s stock valued at $11,919,000 after acquiring an additional 3,415 shares during the period. Compound Planning Inc. raised its stake in Taiwan Semiconductor Manufacturing by 0.7% in the 1st quarter. Compound Planning Inc. now owns 43,812 shares of the semiconductor company’s stock valued at $14,806,000 after acquiring an additional 305 shares during the period. Klingman & Associates LLC raised its stake in Taiwan Semiconductor Manufacturing by 18.5% in the 1st quarter. Klingman & Associates LLC now owns 3,212 shares of the semiconductor company’s stock valued at $1,085,000 after acquiring an additional 502 shares during the period. Finally, Keebeck Wealth Management raised its stake in Taiwan Semiconductor Manufacturing by 164.4% in the 1st quarter. Keebeck Wealth Management now owns 4,151 shares of the semiconductor company’s stock valued at $1,407,000 after acquiring an additional 2,581 shares during the period. 16.51% of the stock is currently owned by institutional investors.

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.