Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 6.6% – Here’s Why

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were down 6.6% on Friday . The stock traded as low as $412.79 and last traded at $415.6170. Approximately 19,080,833 shares were traded during mid-day trading, an increase of 38% from the average daily volume of 13,794,963 shares. The stock had previously closed at $444.92.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s CEO said AI demand remains robust and long-term growth looks strong, reinforcing the company’s role at the center of the AI supply chain. TSMC CEO Issues Stark AI Supply Warning — Wedbush Sees Big Opportunity
• Positive Sentiment: Wedbush turned bullish on TSMC after the AI supply warning, viewing tight supply as evidence of strong pricing power and sustained demand. TSMC CEO Issues Stark AI Supply Warning — Wedbush Sees Big Opportunity
• Positive Sentiment: Brokerage coverage remains favorable, with TSMC reportedly carrying an average “Buy” rating, which can help support investor sentiment. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Given Average Rating of “Buy” by Brokerages
• Neutral Sentiment: TSMC’s annual shareholder meeting approved 2025 results and charter changes, a routine corporate update with limited immediate stock impact. TSMC Shareholders Approve 2025 Results and Charter Changes at June 4 Meeting
• Negative Sentiment: CEO comments that TSMC still cannot fully satisfy customer demand, especially for AI chips, raised concerns about supply bottlenecks and execution challenges. TSMC Stock Price Drops as CEO Warns Chip Supply Struggles to Meet AI Demand
• Negative Sentiment: Reports that the AI chip shortage may last for years likely added to worries that supply constraints and rising costs could weigh on near-term margins. Taiwan Semiconductor (TSM) Stock Drops as CEO Projects Years-Long AI Chip Supply Shortage

Analyst Ratings Changes

A number of research firms have issued reports on TSM. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. DA Davidson restated a “buy” rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Finally, Wedbush restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Trading Down 6.6%

The firm has a fifty day moving average of $386.53 and a two-hundred day moving average of $347.24. The company has a market cap of $2.16 trillion, a PE ratio of 34.58, a price-to-earnings-growth ratio of 1.27 and a beta of 1.38. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The firm 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 is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 25.04%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien acquired 2,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average price of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. This represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders purchased 3,346 shares of company stock valued at $218,005 over the last quarter. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $27,000. Stephens Consulting LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares during the period. Evolution Wealth Management Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 36 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors.

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.