Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded up 2.8% during mid-day trading on Monday. The company traded as high as $487.47 and last traded at $486.0440. 10,816,939 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 13,139,375 shares. The stock had previously closed at $472.78.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC continues to benefit from strong artificial-intelligence chip demand. Analysts expect robust third-quarter growth, while rising earnings estimates and the planned 2-nanometer production ramp support the longer-term outlook. TSMC Q3 Earnings: Strong AI Demand Sets the Bar High for Growth
• Positive Sentiment: Barclays raised its TSMC price target from $650 to $665 and maintained an “overweight” rating, signaling continued confidence in the company’s earnings and AI-related growth prospects. Taiwan Semiconductor Stock Gets Price Target Bump from Barclays
• Positive Sentiment: Record recent sales and TSMC’s expanding Arizona manufacturing investment reinforce its strategic importance to customers seeking advanced chips outside Taiwan. Taiwan Opens Phoenix Office as Arizona Chip Investment Grows
• Neutral Sentiment: Investors are focused on the October 15 earnings report. Revenue is expected to be strong, but the stock’s next major move may depend on gross-margin guidance as TSMC ramps costly 2-nanometer production. TSMC Is Set Up for a Big October 15
• Negative Sentiment: Musk’s clarification that TSMC will not run Terafab removes a newly emerging near-term catalyst and contrasts with earlier reports of preliminary talks. The news has supported Intel while weighing on TSMC shares, although the project’s exact manufacturing structure remains uncertain. TSM Stock Falls After Musk Says TSMC Won’t Run Terafab

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Bank of America increased their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. DA Davidson boosted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Finally, TD Cowen increased their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing Stock Down 0.7%

The company has a market cap of $2.50 trillion, a PE ratio of 34.82, a P/E/G ratio of 1.08 and a beta of 1.37. The company’s 50 day moving average is $429.10 and its 200 day moving average is $411.68. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion during the quarter. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 0.9%. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.

Insiders Place Their Bets

In other news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction on Tuesday, August 18th. The stock was acquired at an average cost of $74.50 per share, with a total value of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien bought 3,000 shares of the stock in a transaction on Tuesday, July 21st. The stock was purchased at an average price of $74.39 per share, with a total value of $223,170.00. Following the completion of the acquisition, the vice president directly owned 4,000 shares in the company, valued at approximately $297,560. This trade represents a 300.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought 14,559 shares of company stock worth $1,067,931 in the last ninety days. 1.11% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Janus Henderson Group PLC lifted its holdings in Taiwan Semiconductor Manufacturing by 7.7% during the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock worth $2,497,638,000 after buying an additional 594,780 shares during the period. Tiger Global Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the last quarter. Invesco Ltd. boosted its position in Taiwan Semiconductor Manufacturing by 1.1% during the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock valued at $1,131,025,000 after purchasing an additional 40,842 shares in the last quarter. Sei Investments Co. boosted its position in Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after purchasing an additional 274,389 shares in the last quarter. Finally, Deutsche Bank AG grew its stake in Taiwan Semiconductor Manufacturing by 94.3% in the fourth quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company’s stock valued at $688,118,000 after purchasing an additional 1,098,727 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.