Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3.2% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 3.2% during trading on Wednesday. The stock traded as low as $428.06 and last traded at $430.6860. 14,487,794 shares changed hands during trading, an increase of 11% from the average session volume of 13,030,028 shares. The stock had previously closed at $445.12.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Analysts at JPMorgan and Citigroup expect additional revenue growth after TSMC’s record third-quarter performance. AI accelerator demand, pricing power, expanding advanced-node capacity and the company’s dominant foundry position remain important bullish factors. MarketWatch analyst preview
• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 EPS forecasts to $16.92 and $22.26, respectively, signaling confidence that accelerating AI demand, higher prices and additional production capacity can support continued earnings growth. MarketBeat estimates
• Positive Sentiment: Longer-term coverage remains favorable because TSMC manufactures a large share of the world’s most advanced AI chips and has been expanding margins through pricing power and scale. Fool long-term outlook
• Neutral Sentiment: Options markets imply a substantial post-earnings move, while historical analysis indicates TSMC stock has not consistently risen after earnings. This highlights elevated event risk rather than a definitive direction. Investopedia earnings volatility preview
• Negative Sentiment: Much of the AI-growth story is already reflected in expectations. Investors are focusing on gross margins, capital expenditures and management’s guidance; merely strong results may not be enough if they fail to exceed the market’s unusually high bar. Invezz earnings preview
• Negative Sentiment: Broader profit-taking across semiconductor stocks and warnings from investor Michael Burry that AI-related chip valuations may be overheated are adding pressure to the sector. TSMC’s shares remain below their early-October peak despite strong revenue, suggesting investors are becoming more valuation-sensitive. 247WallSt market commentary

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Zacks Research raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, October 6th. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. DA Davidson lifted their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Finally, Bank of America raised their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $524.89.

Taiwan Semiconductor Manufacturing Trading Down 3.2%

The firm has a market capitalization of $2.23 trillion, a P/E ratio of 31.07, a PEG ratio of 0.98 and a beta of 1.37. The business has a 50-day moving average price of $434.46 and a 200-day moving average price of $415.74. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion during the quarter. Analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 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 paid a dividend of $1.0854 per share. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 24.96%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 3,000 shares of the business’s stock in a transaction dated Tuesday, July 21st. The stock was bought at an average price of $74.39 per share, for a total transaction of $223,170.00. Following the completion of the purchase, the vice president owned 4,000 shares of the company’s stock, valued at approximately $297,560. The trade was a 300.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Lipen Yuan purchased 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 16,043 shares of company stock valued at $1,185,746. 1.11% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently added to or reduced their stakes in the stock. Fairfield Financial Advisors LTD increased its position in Taiwan Semiconductor Manufacturing by 16.7% in the 3rd quarter. Fairfield Financial Advisors LTD now owns 8,637 shares of the semiconductor company’s stock valued at $3,940,000 after acquiring an additional 1,237 shares in the last quarter. Investment Planning Advisors Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 27.0% during the third quarter. Investment Planning Advisors Inc. now owns 1,267 shares of the semiconductor company’s stock valued at $578,000 after purchasing an additional 269 shares during the last quarter. Adirondack Trust Co. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 20.4% in the third quarter. Adirondack Trust Co. now owns 667 shares of the semiconductor company’s stock valued at $304,000 after purchasing an additional 113 shares in the last quarter. Lodestone Wealth Management LLC raised its position in Taiwan Semiconductor Manufacturing by 2.5% in the 3rd quarter. Lodestone Wealth Management LLC now owns 3,312 shares of the semiconductor company’s stock worth $1,511,000 after purchasing an additional 81 shares during the last quarter. Finally, Three Magnolias Financial Advisors LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 17.4% during the 3rd quarter. Three Magnolias Financial Advisors LLC now owns 607 shares of the semiconductor company’s stock worth $277,000 after buying an additional 90 shares in the last quarter. Institutional investors 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.