Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.8% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded down 1.8% on Monday. The stock traded as low as $398.29 and last traded at $398.7150. 12,709,994 shares traded hands during mid-day trading, a decline of 3% from the average daily volume of 13,039,097 shares. The stock had previously closed at $406.13.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC’s shares have gained 33.2% over the past year as demand for advanced chips, AI infrastructure and high-performance computing has accelerated. The company’s global manufacturing expansion and technology leadership remain central to the bullish case. TSM Soars 33% in the Past Year
• Positive Sentiment: Analysts reportedly have an average price target of $528.78, suggesting substantial potential upside from the recently supplied trading level. Average Analyst Price Target
• Positive Sentiment: TSMC is viewed as a major beneficiary of the AI buildout. High-performance computing represented 68% of sales in the cited period, while quarterly revenue increased 41.2% year over year, reinforcing expectations for strong chip demand. TSMC and AI Growth
• Positive Sentiment: Elon Musk may be softening his demand for control of the proposed Terafab venture, potentially giving TSMC a larger role in the project alongside SpaceX and Tesla. The talks remain preliminary, so the commercial impact is uncertain. Musk Terafab Talks
• Neutral Sentiment: Comparisons with Intel highlight TSMC’s stronger exposure to advanced-chip and AI growth, while its expanding overseas footprint and continued Taiwan investment remain important strategic themes. What’s Going on With Taiwan Semiconductor Stock
• Negative Sentiment: Eight exchange-traded funds sold a net $81 million of TSMC shares, creating a modest technical and supply overhang. ETF TSMC Holdings
• Negative Sentiment: The stock’s strong year-long advance leaves investors sensitive to profit-taking and valuation concerns. A sell-off in Alphabet also highlights the risk that disappointing results from major AI and cloud companies could temporarily pressure semiconductor stocks. Alphabet Sell-Off and AI Stocks

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. TD Cowen increased their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a research note on Friday, October 16th. Finally, 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. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

The stock’s 50-day simple moving average is $435.00 and its 200-day simple moving average is $399.49. The stock has a market cap of $2.07 trillion, a price-to-earnings ratio of 25.66, a price-to-earnings-growth ratio of 0.82 and a beta of 1.37. 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 results 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. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The company had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. During the same period in the previous year, the business earned $2.92 earnings per share. The firm’s quarterly revenue was up 41.2% on a year-over-year basis. Analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal 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 paid a dividend of $1.0854 per share. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 22.07%.

Insiders Place Their Bets

In related news, VP Lipen Yuan bought 1,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was purchased at an average cost of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president owned 6,000 shares in the company, valued at $447,000. The trade was a 20.00% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last ninety days, insiders acquired 6,043 shares of company stock valued at $457,926. 1.11% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Tiger Global Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 49.4% in the 1st 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 in the last quarter. Sei Investments Co. increased its stake in Taiwan Semiconductor Manufacturing by 11.8% in the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after acquiring an additional 274,389 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Taiwan Semiconductor Manufacturing by 67.2% in the third quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock valued at $783,513,000 after acquiring an additional 690,523 shares during the last quarter. Bessemer Group Inc. raised its position in Taiwan Semiconductor Manufacturing by 7.9% during the first quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company’s stock valued at $602,147,000 after purchasing an additional 130,602 shares in the last quarter. Finally, Bank Julius Baer & Co. Ltd Zurich raised its position in Taiwan Semiconductor Manufacturing by 25.1% during the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 1,210,323 shares of the semiconductor company’s stock valued at $552,116,000 after purchasing an additional 242,640 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.