Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 1.6% After Insider Buying Activity

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 1.6% during trading on Tuesday after an insider bought additional shares in the company. The company traded as high as $408.37 and last traded at $404.8980. Approximately 9,222,186 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 13,016,892 shares. The stock had previously closed at $398.63.

Specifically, VP Lipen Yuan bought 1,000 shares of the business’s stock in a transaction on Sunday, November 1st. The stock was acquired at an average price of $71.49 per share, with a total value of $71,490.00. Following the completion of the purchase, the vice president directly owned 8,000 shares in the company, valued at $571,920. This represents a 14.29% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Analyst Upgrades and Downgrades

A number of brokerages have commented on TSM. Sanford C. Bernstein increased their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. TD Cowen lifted their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b)” rating in a report on Wednesday, October 21st. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Needham & Company LLC upped their price objective on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Three research 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. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: A commentary favoring TSM over Broadcom argues that TSMC manufactures chips for Nvidia, AMD, Apple and Broadcom, giving it exposure to multiple potential AI winners rather than relying on custom-chip customers continuing to build their own processors. Article: Taiwan Semi or Broadcom: If I Could Only Own 1 for the Next 5 Years, It Would Be This
• Positive Sentiment: Other bullish coverage highlights TSMC as an essential supplier to competing AI chip designers and points to its advanced-chip capabilities and manufacturing scale as long-term strengths. These arguments reinforce the view that continued AI infrastructure investment could support demand for TSMC’s services. Article: Until Next Gen Computing Implodes I’ll Keep Buying Taiwan Semiconductor Article: Top Wide-Moat Stocks to Buy for Steady Long-Term Returns
• Positive Sentiment: Vice President Lipen Yuan disclosed buying 1,000 shares, increasing his reported stake by 14.29%. The insider purchase may be viewed as a modest confidence signal, though its size alone does not establish a broader trend. Article: Taiwan Semiconductor Manufacturing Company Ltd. insider transaction
• Neutral Sentiment: Reports say Elon Musk may soften his stance on control of the proposed Terafab venture in discussions involving TSMC. A larger role could create an opportunity, but talks remain uncertain and no deal is confirmed. Article: Musk may soften Terafab control stance in fresh TSMC talks
• Negative Sentiment: A report says hedge funds have turned underweight AI stocks amid a sharp sector-wide sell-off. That risk-off shift could weigh on TSM sentiment even though the article does not identify a TSM-specific deterioration. Article: AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023

Taiwan Semiconductor Manufacturing Stock Performance

The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a fifty day moving average price of $434.60 and a 200 day moving average price of $399.83. The stock has a market cap of $2.10 trillion, a PE ratio of 26.06, a P/E/G ratio of 0.89 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The company had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. During the same period in the prior year, the business posted $2.92 EPS. Taiwan Semiconductor Manufacturing’s quarterly revenue was up 41.2% compared to the same quarter last year. Analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 1.1%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 22.27%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several large investors have recently bought and sold shares of TSM. Fiduciary Advisors Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 200.0% in the third quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 40 shares during the period. Cedar Mountain Advisors LLC grew its holdings in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 30 shares in the last quarter. Markowski Investments bought a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $33,000. Heritage Family Offices LLP purchased a new position in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at about $37,000. Finally, Curry Webb Wealth Management LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at about $39,000. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.