Taiwan Semiconductor Manufacturing (NYSE:TSM) Earns "Buy" Rating from DA Davidson

Key Points

• DA Davidson reaffirmed its “Buy” rating on Taiwan Semiconductor Manufacturing and set a $500 price target, implying approximately 21% upside from the reported $412.51 share price.
• Analyst sentiment remains broadly positive: TSMC has an average “Buy” rating and a consensus price target of $528.78, with other firms assigning targets as high as $670.
• Shares fell 2.3% during Friday trading despite strong fundamentals, including a 50.31% net margin, 39.25% return on equity, and quarterly revenue of $46.87 billion; insiders also purchased more than $1.18 million of stock in the last quarter.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report)'s stock had its "buy" rating restated by investment analysts at DA Davidson in a research note issued to investors on Friday, Benzinga reports. They presently have a $500.00 target price on the semiconductor company's stock. DA Davidson's target price indicates a potential upside of 21.21% from the stock's current price.

A number of other equities research analysts have also recently weighed in on TSM. Barclays restated an "overweight" rating and set a $670.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday. Weiss Ratings cut Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, October 6th. TD Cowen upped their price objective 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. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a "buy" rating and a $515.00 price objective for the company. Finally, Sanford C. Bernstein upped their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 2.3%

Shares of TSM traded down $9.75 during midday trading on Friday, reaching $412.51. 9,929,889 shares of the stock were exchanged, compared to its average volume of 13,063,563. Taiwan Semiconductor Manufacturing has a 52 week low of $266.82 and a 52 week high of $487.47. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The company's 50 day moving average is $434.85 and its two-hundred day moving average is $417.14. The company has a market capitalization of $2.14 trillion, a P/E ratio of 29.74, a PEG ratio of 0.89 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings results 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 39.25% and a net margin of 50.31%. The business had revenue of $46.87 billion for the quarter. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.60 earnings per share for the current year.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average cost of $74.50 per share, with a total value of $74,500.00. Following the purchase, the vice president owned 6,000 shares in the company, valued at $447,000. This trade represents a 20.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Bor-Zen Tien purchased 3,000 shares of the firm's stock in a transaction dated Tuesday, July 21st. The stock was acquired at an average cost 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. This represents a 300.00% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 16,043 shares of company stock valued at $1,185,746 over the last quarter. 1.11% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Cedar Mountain Advisors LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock worth $31,000 after buying an additional 30 shares during the last quarter. Markowski Investments purchased a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $33,000. Evolution Wealth Management Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after buying an additional 67 shares during the last quarter. Financial Freedom LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth about $32,000. Finally, Lam Group Inc. purchased a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth about $34,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported its sixth consecutive record-profit quarter. Third-quarter net income rose approximately 69% year over year to about NT$763 billion, while revenue increased roughly 51%; both figures exceeded analyst expectations. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: Management guided for fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the approximately $48.8 billion consensus estimate, reinforcing that demand for advanced AI and high-performance-computing chips remains strong. TSMC earnings report
• Positive Sentiment: Investors received additional long-term growth signals: 2026 revenue is expected to rise about 44%, while annual 2-nanometer capacity is expected to more than double in 2027. Advanced technologies already represent about 79% of wafer revenue. Three key takeaways for long-term investors
• Neutral Sentiment: TSMC is reportedly exploring additional Texas capacity, including potential participation in Elon Musk’s proposed “Terafab” complex. Separately, Taiwan is backing industrial parks for Nvidia suppliers, which could expand the U.S. semiconductor ecosystem but may increase execution and geographic-expansion demands. TSMC and Elon Musk’s Terafab talks
• Negative Sentiment: The main concern is spending: TSMC may invest as much as $64 billion in capital expenditures this year. Although the investment supports future AI capacity, investors worry about oversupply, execution risk, and whether customer demand will justify the enormous buildout. TSMC’s $64 billion spending plan
• Negative Sentiment: TSM is also being pressured by a wider chip-sector selloff tied to inflation, higher interest rates, and concerns about debt financing for AI infrastructure companies such as CoreWeave and Oracle. Strong results were therefore insufficient to overcome profit-taking and fears that the AI trade may be overextended. Chip stocks tumble on AI investment worries

Taiwan Semiconductor Manufacturing Company Profile

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.