Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.8% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) rose 1.8% during trading on Monday. The stock traded as high as $427.16 and last traded at $420.2360. 12,250,462 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 13,094,863 shares. The stock had previously closed at $412.61.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Analyst upgrade supports the shares: Zacks upgraded TSMC to a Rank #1, or “Strong Buy,” citing improving earnings prospects and the potential for upward estimate revisions. TSMC Upgraded to Strong Buy
• Positive Sentiment: AI and high-performance computing remain powerful growth drivers: High-performance computing generated approximately 68% of TSMC’s quarterly revenue, with growth outpacing the company’s overall expansion. Reports also describe AI-chip demand as exceeding available supply. The Most Important Number in Taiwan Semiconductor’s Earnings Report
• Positive Sentiment: Potential Nvidia-related business could deepen TSMC’s role in AI infrastructure: Nvidia reportedly wants Samsung, Micron and SK Hynix to use TSMC’s 3-nanometer process for next-generation high-bandwidth-memory base dies. This could create additional demand for TSMC’s advanced manufacturing capacity. Nvidia Wants Top Memory Makers to Use TSMC for Next-Generation HBM Base Dies
• Positive Sentiment: Capacity investment signals confidence: TSMC plans to spend roughly $60 billion to $64 billion on factories and equipment this year, with spending expected to remain elevated through 2028 to meet sustained customer demand. TSMC Is Spending up to $64 Billion This Year

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. DA Davidson reissued a “buy” rating and set a $500.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday. Sanford C. Bernstein upped their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, October 6th. Bank of America increased their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Finally, Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a 50-day simple moving average of $434.71 and a two-hundred day simple moving average of $417.82. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm has a market cap of $2.18 trillion, a PE ratio of 27.04, a PEG ratio of 0.85 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The firm had revenue of $46.87 billion during the quarter. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.90 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared 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. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 1,000 shares of the stock in a transaction on Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, with a total value of $74,500.00. Following the completion of the transaction, the vice president owned 6,000 shares in the company, valued at approximately $447,000. The trade was a 20.00% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Shyue-Shyh Lin bought 1,000 shares of the company’s stock in a transaction on Tuesday, July 21st. The stock was bought at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the purchase, the vice president owned 30,269 shares of the company’s stock, valued at approximately $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders purchased 13,043 shares of company stock worth $970,386. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently modified their holdings of the stock. Tiger Global Management LLC raised its stake in 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 acquiring an additional 1,839,600 shares during the period. Fundsmith LLP purchased a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $548,465,000. Assenagon Asset Management S.A. purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter worth $490,461,000. Perseverance Asset Management International raised its holdings in shares of Taiwan Semiconductor Manufacturing by 1,453.9% in the 1st quarter. Perseverance Asset Management International now owns 446,505 shares of the semiconductor company’s stock valued at $150,896,000 after acquiring an additional 417,771 shares in the last quarter. Finally, DJE Kapital AG purchased a new stake in Taiwan Semiconductor Manufacturing in the first quarter valued at approximately $118,389,000. Hedge funds and other 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 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.