Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 6.2% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were up 6.2% on Friday. The company traded as high as $380.72 and last traded at $375.1530. Approximately 23,717,514 shares traded hands during mid-day trading, an increase of 80% from the average session volume of 13,205,001 shares. The stock had previously closed at $353.10.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Taiwan’s tighter short-selling rules and a planned $15 billion stabilization fund helped lift TSM shares in premarket trading after a sharp decline in Asian chip stocks. The move may ease immediate selling pressure, though it does not resolve the causes of the sector selloff. Article: TSMC Surges as Taiwan Restricts Short Selling
• Positive Sentiment: Bernstein raised its price target to $600 and reiterated an “outperform” rating, pointing to potential upside from current levels. TSMC’s role manufacturing advanced chips for both Nvidia and AMD also gives it exposure to multiple AI-chip leaders. Article: Bernstein Raises TSMC Price Target Article: TSMC Makes Chips for Nvidia and AMD
• Neutral Sentiment: Nvidia reportedly wants TSMC to make advanced memory chips, and TSMC is considering entering the memory business. This could open a new growth opportunity, but the reports describe a possibility rather than a confirmed plan. Article: Nvidia Reportedly Wants TSMC to Make Advanced Memory Chips
• Negative Sentiment: The rebound comes amid a broad AI and semiconductor selloff, including steep losses in Asian chip stocks. Investor concerns about AI spending expectations and elevated valuations could continue to drive volatility despite TSMC’s underlying demand opportunities. Article: Wall Street’s AI Crash Hits Asia

Analyst Ratings Changes

Several brokerages have recently commented on TSM. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b)” rating to a “hold (c+)” rating in a research report on Wednesday. DA Davidson reiterated a “buy” rating and set a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, October 16th. TD Cowen increased their target price 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. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target for the company. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing Trading Up 6.2%

The firm has a market cap of $1.95 trillion, a price-to-earnings ratio of 24.14, a P/E/G ratio of 0.80 and a beta of 1.44. The firm’s 50-day moving average is $432.74 and its 200-day moving average is $400.53. 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 released its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating analysts’ consensus estimates of $4.45 by $0.15. The firm had revenue of $46.72 billion for the quarter, compared to analyst estimates of $45.67 billion. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business’s quarterly revenue was up 41.2% compared to the same quarter last year. During the same period last year, the firm earned $2.92 earnings per share. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.2%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 22.27%.

Insiders Place Their Bets

In related news, VP Lipen Yuan purchased 1,000 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the purchase, the vice president owned 6,000 shares of the company’s stock, valued at approximately $447,000. This trade represents a 20.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have bought 5,428 shares of company stock valued at $411,021. 1.11% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Money Concepts Capital Corp grew its position in Taiwan Semiconductor Manufacturing by 6.3% in the 3rd quarter. Money Concepts Capital Corp now owns 2,725 shares of the semiconductor company’s stock worth $1,243,000 after purchasing an additional 161 shares in the last quarter. Allworth Financial LP lifted its position in shares of Taiwan Semiconductor Manufacturing by 6.0% during the 3rd quarter. Allworth Financial LP now owns 39,769 shares of the semiconductor company’s stock worth $18,993,000 after buying an additional 2,261 shares in the last quarter. GKV Capital Management Co. Inc. lifted its position in shares of Taiwan Semiconductor Manufacturing by 10.4% during the 3rd quarter. GKV Capital Management Co. Inc. now owns 12,713 shares of the semiconductor company’s stock worth $5,800,000 after buying an additional 1,195 shares in the last quarter. Fisher Asset Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 0.4% in the 3rd quarter. Fisher Asset Management LLC now owns 18,932,587 shares of the semiconductor company’s stock worth $8,636,858,000 after buying an additional 66,389 shares during the last quarter. Finally, Private Advisory Group LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 5.7% in the 3rd quarter. Private Advisory Group LLC now owns 64,417 shares of the semiconductor company’s stock worth $29,386,000 after buying an additional 3,496 shares during the last quarter. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.