Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Stock Has Average Target Price of $524.89

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) have been given an average recommendation of “Buy” by the sixteen research firms that are presently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $524.89.

Several research analysts have recently issued reports on TSM shares. Barclays increased their target price on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 6th. Susquehanna lifted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Sanford C. Bernstein upped their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Weiss Ratings cut Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. Finally, Bank of America increased their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th.

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE TSM opened at $452.87 on Thursday. Taiwan Semiconductor Manufacturing has a 1 year low of $266.82 and a 1 year high of $487.47. The stock has a market capitalization of $2.35 trillion, a P/E ratio of 32.67, a P/E/G ratio of 1.00 and a beta of 1.37. The company’s 50-day moving average is $433.13 and its 200 day moving average is $413.81. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, sell-side analysts expect that Taiwan Semiconductor Manufacturing will post 16.56 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be given a $1.0854 dividend. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 2,000 shares of the firm’s stock in a transaction that occurred on Sunday, July 19th. The stock was bought at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the purchase, the vice president directly owned 28,269 shares in the company, valued at $2,027,169.99. The trade was a 7.61% 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 the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average cost of $74.50 per share, with a total value of $74,500.00. Following the completion of the transaction, the vice president owned 6,000 shares in the company, valued at $447,000. This trade represents a 20.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 16,043 shares of company stock worth $1,185,746 in the last three months. 1.11% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in TSM. Tiger Global Management LLC raised its stake in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after buying an additional 1,839,600 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after acquiring an additional 1,313,917 shares during the last quarter. Corient Private Wealth LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 330.0% in the fourth quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock worth $481,111,000 after acquiring an additional 1,215,035 shares during the last quarter. Fundsmith LLP bought a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at $548,465,000. Finally, Deutsche Bank AG increased its holdings in shares of Taiwan Semiconductor Manufacturing by 94.3% during the fourth quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company’s stock valued at $688,118,000 after acquiring an additional 1,098,727 shares in the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record AI demand: TSMC reported third-quarter revenue of NT$1.49 trillion, or approximately $46.7 billion, up 50% year over year and ahead of analyst expectations. September sales increased 54.6% year over year, reinforcing strong demand for advanced chips used in artificial intelligence and high-performance computing. TSMC’s third-quarter revenue surges to record, beating market forecast
• Positive Sentiment: More advanced-packaging capacity: TSMC agreed to a multiyear, $2 billion manufacturing arrangement with GlobalFoundries to produce U.S.-made silicon interposers for TSMC’s CoWoS advanced-packaging ecosystem. The deal supports future AI capacity, although volume production is not expected to ramp until 2028. GlobalFoundries Lands $2 Billion TSMC Deal to Expand US AI Chip Packaging
• Positive Sentiment: Supportive industry outlook: Analysts and market commentators continue to identify semiconductors as a leading October sector, while strong results from TSMC and Samsung suggest AI infrastructure spending remains intact. TSMC’s earnings report next week could provide additional guidance on demand, margins and capital expenditures. Record Profits at Samsung and TSMC Say the AI Trade is Intact
• Neutral Sentiment: TSMC CEO Che-Chia Wei and other executives reported modest open-market purchases. The buying may indicate management confidence, but the transactions are small relative to the company’s market capitalization. TSMC Insider Buying and Selling
• Negative Sentiment: Valuation and profit-taking: Despite record revenue and approximately 77% year-over-year profit growth in the latest reported quarter, investors are questioning whether the AI gains are already reflected in TSM’s premium valuation. The stock is trading near its 52-week high, increasing sensitivity to earnings expectations.
• Negative Sentiment: Macro and geopolitical risks: Rising Treasury yields and oil prices have pressured technology stocks broadly. Taiwan-related geopolitical concerns and uncertainty surrounding a potential Musk-linked Terafab project are additional risks, particularly because TSMC’s exact role remains unclear.

About Taiwan Semiconductor Manufacturing

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.