Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 4.6% Following Better-Than-Expected Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was up 4.6% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $351.33 and last traded at $342.0010. Approximately 42,026,551 shares traded hands during trading, an increase of 159% from the average daily volume of 16,247,210 shares. The stock had previously closed at $327.11.

The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. The firm had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.34% and a net margin of 43.72%.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be issued a dividend of $0.9678 per share. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 31.28%.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Blowout Q4 results — TSMC reported record quarterly profit and revenue that beat estimates, highlighting strong AI-chip demand and margin expansion. TSMC Blowout Q4 Starts A Chain Reaction — CoreWeave, Nebius Lead The FOMO Flood
• Positive Sentiment: Higher capex guidance — Management raised 2026 capital spending to about $52–56 billion to scale advanced-node capacity, signaling conviction in multi-year AI demand and supporting long-term revenue growth. Taiwan Semiconductor’s Q4 Earnings Should Ignite Rally Continuation
• Positive Sentiment: Strong guidance and beat on key metrics — Q4 revenue/profits beat consensus and the firm provided above-consensus near-term revenue guidance, reinforcing the view that AI server demand will lift 2026 top-line momentum. Chip stocks pop after TSMC’s earnings beat boosts confidence in industrywide demand
• Positive Sentiment: Unusual bullish options flow — Large, above-average call buying (hundreds of thousands of contracts) indicates speculative and institutional conviction in further upside. (Intraday options volume entry)
• Positive Sentiment: Policy and investment tailwind — A reported U.S.–Taiwan semiconductor deal that channels up to $500 billion of investment into expanding chip capacity in the U.S. supports long-term capacity expansion and geopolitical diversification of fabs. Taiwan chip deal is worth a total of $500 billion, US Commerce Secretary Lutnick says
• Positive Sentiment: Analyst bullishness — Firms raised price targets and reiterated buys after the beat (e.g., Needham hike), supporting momentum and attracting more buyers. TSM-TSMC price target raised by Needham
• Neutral Sentiment: Sector ripple effects — TSMC’s beat lifted chip-equipment and supplier stocks (e.g., ASML hit record levels), which can amplify flows into semiconductors but don’t change TSMC’s fundamentals directly. ASML tops $500 billion market cap as TSMC results ignite semis rally
• Negative Sentiment: Capacity constraints and customer allocations — Commentary that TSMC is reaching physical capacity limits for some nodes (and selectively prioritizing customers) could limit near-term share gains for some clients and create supply tensions that cap upside if ramping fabs lags demand. TSMC Says ‘No More’ To Nvidia: Why That Is Intel’s Golden Ticket

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research note on Saturday, January 3rd. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Barclays increased their target price on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the stock an “overweight” rating in a research note on Friday, October 17th. Itau BBA Securities assumed coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, October 7th. They issued an “outperform” rating on the stock. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. Eight equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $365.00.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Westfuller Advisors LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 2.2% during the third quarter. Westfuller Advisors LLC now owns 1,551 shares of the semiconductor company’s stock valued at $434,000 after buying an additional 34 shares during the period. Sovereign Financial Group Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 4.5% during the fourth quarter. Sovereign Financial Group Inc. now owns 793 shares of the semiconductor company’s stock worth $241,000 after purchasing an additional 34 shares during the last quarter. BankPlus Wealth Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.6% during the third quarter. BankPlus Wealth Management LLC now owns 2,291 shares of the semiconductor company’s stock worth $640,000 after purchasing an additional 35 shares during the last quarter. Bank of Jackson Hole Trust increased its stake in Taiwan Semiconductor Manufacturing by 7.5% in the third quarter. Bank of Jackson Hole Trust now owns 500 shares of the semiconductor company’s stock valued at $140,000 after purchasing an additional 35 shares during the last quarter. Finally, New Millennium Group LLC lifted its position in Taiwan Semiconductor Manufacturing by 2.9% during the third quarter. New Millennium Group LLC now owns 1,248 shares of the semiconductor company’s stock worth $349,000 after buying an additional 35 shares during the period. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Trading Up 4.6%

The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $1.77 trillion, a price-to-earnings ratio of 35.08, a price-to-earnings-growth ratio of 0.79 and a beta of 1.29. The business has a 50 day simple moving average of $297.51 and a 200-day simple moving average of $272.29.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.