Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 2.3% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares rose 2.3% during mid-day trading on Tuesday . The company traded as high as $449.39 and last traded at $446.0920. Approximately 18,003,112 shares were traded during trading, an increase of 45% from the average daily volume of 12,403,728 shares. The stock had previously closed at $436.0010.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is being tied to the ongoing AI boom, with multiple reports noting that demand for advanced chips remains strong and could stay tight through 2027, supporting pricing power and future revenue. Article Title
• Positive Sentiment: News that Nvidia is expanding its use of TSMC’s AI technologies across chip production reinforces TSMC’s importance as a key manufacturing partner to the biggest AI chip designer. Article Title
• Positive Sentiment: Arm’s comment that it may hit its AI chip revenue goal early adds to the broader evidence that AI semiconductor demand is running hotter than expected, which is supportive for TSMC as a foundry supplier. Article Title
• Neutral Sentiment: Several articles highlight TSMC as one of the most-owned semiconductor names by hedge funds and a favorite in growth-stock screens, which reflects strong investor interest but does not by itself change fundamentals. Article Title
• Neutral Sentiment: One report noted TSMC’s ADR premium falling to a two-year low as Taipei-listed shares outpaced U.S. shares, suggesting some valuation rotation rather than a clear change in the company’s outlook. Article Title
• Negative Sentiment: A GuruFocus piece flagged TSMC as potentially overvalued after its recent rally, which could make some investors cautious even though the long-term AI backdrop remains constructive. Article Title

Analyst Upgrades and Downgrades

TSM has been the subject of a number of recent research reports. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, DA Davidson reissued a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two 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. According to MarketBeat.com, the company has an average rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

The firm has a market cap of $2.31 trillion, a PE ratio of 37.11, a price-to-earnings-growth ratio of 1.22 and a beta of 1.39. The stock’s fifty day moving average price is $380.19 and its 200-day moving average price is $343.92. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.04%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Bor-Zen Tien bought 2,000 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was bought at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the transaction, the vice president directly owned 11,051 shares of the company’s stock, valued at $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 3,346 shares of company stock worth $218,005 in the last ninety days. 1.11% of the stock is currently owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently made changes to their positions in TSM. Tiger Global Management LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares during the period. Van ECK Associates Corp increased its stake in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd purchased a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $495,163,000. T. Rowe Price Investment Management Inc. increased its stake in Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after purchasing an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP purchased a new position in Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $360,443,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.