Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.2% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price dropped 2.2% during trading on Friday. The stock traded as low as $410.58 and last traded at $413.1480. 16,014,792 shares traded hands during trading, an increase of 22% from the average daily volume of 13,096,113 shares. The stock had previously closed at $422.25.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported its sixth consecutive record-profit quarter. Third-quarter net income rose approximately 69% year over year to about NT$763 billion, while revenue increased roughly 51% to NT$1.49 trillion. Advanced technologies, including 3-nanometer production, represented 79% of wafer revenue. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: The company issued fourth-quarter revenue guidance of $52.3 billion to $54.3 billion, well above the roughly $48.8 billion analyst consensus. Management also indicated that AI and high-performance-computing demand remains strong, with full-year 2026 revenue growth expected near 44%. TSMC: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: DA Davidson reaffirmed its Buy rating with a $500 price target, while Needham raised its target to $560. Analysts remain bullish on TSMC’s leading-edge manufacturing position and expect annual 2-nanometer capacity to more than double in 2027. TSMC Doubles Down on CapEx as Agentic AI Expands
• Neutral Sentiment: TSMC is reportedly exploring additional U.S. manufacturing opportunities, including potential participation in Elon Musk’s Texas “Terafab” project. Such expansion could improve customer access and supply resilience but would require substantial investment.
• Negative Sentiment: Investors are concerned about TSMC’s planned capital expenditures of up to $64 billion and whether AI-related demand and financing can justify the industry’s rapidly rising investment. These concerns have overshadowed the earnings beat and guidance increase. Why TSMC’s $64B Spending Plan Shouldn’t Deter Investors
• Negative Sentiment: A wider chip-stock selloff, concerns about AI debt financing and a jury verdict affecting Qualcomm and Arm have pressured the semiconductor sector, limiting the positive reaction to TSMC’s results. Chip Selloff Extends

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. DA Davidson reiterated a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday. Susquehanna upped their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Stifel Nicolaus began coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price objective on the stock. Finally, Sanford C. Bernstein increased their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research note on Tuesday, August 11th. Three equities research 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. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Trading Down 2.2%

The company’s 50-day moving average is $434.85 and its 200 day moving average is $417.14. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The firm has a market cap of $2.14 trillion, a PE ratio of 29.81, a P/E/G ratio of 0.89 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. The business had revenue of $46.87 billion for the quarter. As a group, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 EPS 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. Shareholders of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis 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 is presently 24.96%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Monday, August 3rd. The stock was bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the transaction, the vice president directly owned 14,051 shares of the company’s stock, valued at approximately $1,026,566.06. This represents a 7.66% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Lipen Yuan acquired 350 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was bought at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the purchase, the vice president directly owned 2,000 shares in the company, valued at $147,160. This represents a 21.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders acquired 16,043 shares of company stock valued at $1,185,746. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors have recently modified their holdings of the company. Cedar Mountain Advisors LLC raised its position in Taiwan Semiconductor Manufacturing by 88.2% in the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares in the last quarter. Markowski Investments acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $33,000. Evolution Wealth Management Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 67 shares during the last quarter. Financial Freedom LLC acquired a new position in Taiwan Semiconductor Manufacturing during the first quarter valued at approximately $32,000. Finally, Lam Group Inc. bought a new stake in shares of Taiwan Semiconductor Manufacturing in the first quarter worth about $34,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.