Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 2.2% – Time to Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was up 2.2% on Tuesday . The stock traded as high as $416.49 and last traded at $413.50. Approximately 9,995,251 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 13,866,591 shares. The stock had previously closed at $404.52.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s CEO reportedly promised a 30%+ boost to employee bonuses as Q1 revenue surged and AI chip demand remained strong, reinforcing confidence in the company’s earnings momentum. Article Title
• Positive Sentiment: TSMC said surging AI electricity demand is forcing customers to prioritize energy efficiency in future chip designs, highlighting how central its advanced manufacturing remains to the next phase of AI hardware. Article Title
• Positive Sentiment: Analysts and market commentary pointed to TSMC as a major beneficiary of the broad semiconductor AI boom, with the stock nearing its 52-week high amid strong guidance for 2026 revenue growth and higher capital spending. Article Title
• Positive Sentiment: Nvidia’s CEO said the company plans to spend heavily in Taiwan and deepen its local AI ecosystem, which supports expectations for continued orders and strategic importance for TSMC. Article Title
• Positive Sentiment: Applied Materials’ CEO said the semiconductor industry is in its strongest period ever, citing AI-driven computing demand and long-term growth, which adds to the bullish backdrop for TSMC. Article Title
• Neutral Sentiment: Coverage also noted TSMC’s dividend update and price increases for advanced 3nm chips, but these items are secondary to the bigger AI-demand story and mainly reinforce the company’s improving cash generation. Article Title
• Neutral Sentiment: Reports that TSMC may raise 3nm process prices point to strong pricing power, though the market may also watch for any demand sensitivity if costs rise too quickly. Article Title

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on TSM shares. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Needham & Company LLC lifted their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $450.00 target price 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 issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 0.4%

The firm has a 50 day moving average price of $376.65 and a 200-day moving average price of $342.03. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The firm has a market cap of $2.20 trillion, a PE ratio of 35.32, a PEG ratio of 1.23 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. Research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Wednesday, September 16th. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 24.71%.

Insider Activity

In other news, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Bor-Zen Tien acquired 2,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president directly owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 3,346 shares of company stock valued at $218,005 in the last quarter. Company insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $25,000. Hilton Head Capital Partners LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $27,000. Stephens Consulting LLC lifted its stake in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares during the last quarter. Strategic Advocates LLC lifted its stake in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $29,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.