Taiwan Semiconductor Manufacturing (NYSE:TSM) Given New $560.00 Price Target at Needham & Company LLC

Key Points

• Needham raised TSMC’s price target from $530 to $560 and maintained a “buy” rating, implying roughly 30% upside from the prior close.
• Analyst sentiment remains positive overall: MarketBeat reports a consensus “buy” rating and an average price target of $528.22, with other firms setting targets as high as $600.
• TSMC’s results and outlook are being supported by strong AI-chip demand, including record quarterly profit and above-consensus revenue guidance, though elevated valuation and broader technology-market concerns could limit near-term gains.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) had its price target lifted by stock analysts at Needham & Company LLC from $530.00 to $560.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's target price indicates a potential upside of 30.03% from the company's previous close.

Other analysts also recently issued research reports about the stock. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. TD Cowen raised their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a report on Friday, July 17th. Bank of America lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a report on Thursday, July 16th. Finally, Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Three equities research 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 MarketBeat, the company has a consensus rating of "Buy" and an average price target of $528.22.

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE TSM opened at $430.69 on Thursday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The company has a market cap of $2.23 trillion, a PE ratio of 31.07, a P/E/G ratio of 0.92 and a beta of 1.37. The business has a 50-day simple moving average of $434.77 and a two-hundred day simple moving average of $416.47. Taiwan Semiconductor Manufacturing has a fifty-two week low of $266.82 and a fifty-two week high of $487.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. The firm had revenue of $46.87 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing will post 16.60 EPS for the current fiscal year.

Insider Activity

In related news, VP Shyue-Shyh Lin bought 2,000 shares of the company's stock in a transaction that occurred on Sunday, July 19th. The shares were purchased at an average cost of $71.71 per share, with a total value of $143,420.00. Following the completion of the acquisition, the vice president directly owned 28,269 shares in the company, valued at approximately $2,027,169.99. The trade was a 7.61% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, August 18th. The shares were bought 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 of the company's stock, valued at $447,000. This represents a 20.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 16,043 shares of company stock valued at $1,185,746 in the last quarter. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently added to or reduced their stakes in the company. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 4.1% in the 3rd quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 2,073 shares of the semiconductor company's stock valued at $946,000 after buying an additional 82 shares during the period. Nvwm LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 3.5% in the third quarter. Nvwm LLC now owns 5,504 shares of the semiconductor company's stock valued at $2,511,000 after buying an additional 187 shares in the last quarter. Kellett Wealth Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing during the third quarter worth $208,000. KG Capital Management grew its holdings in Taiwan Semiconductor Manufacturing by 0.4% during the third quarter. KG Capital Management now owns 6,228 shares of the semiconductor company's stock worth $2,841,000 after acquiring an additional 25 shares during the period. Finally, Loftus Peak Pty Ltd grew its holdings in Taiwan Semiconductor Manufacturing by 4.6% during the third quarter. Loftus Peak Pty Ltd now owns 134,934 shares of the semiconductor company's stock worth $61,556,000 after acquiring an additional 5,901 shares during the period. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC posted record third-quarter net profit of approximately NT$763 billion, up 68.7% year over year and above the NT$746.3 billion analyst estimate. Revenue also exceeded expectations, supported by strong demand for advanced AI and high-performance-computing chips. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: Management issued fourth-quarter revenue guidance of $52.3 billion to $54.3 billion, well above the roughly $48.8 billion consensus estimate. Advanced technologies accounted for about 79% of wafer sales, reinforcing TSMC’s position in leading-edge semiconductor manufacturing. TSMC beats estimates as AI demand drives sales growth
• Positive Sentiment: Chief Executive Officer C.C. Wei said he sees no indication of a slowdown, suggesting that AI infrastructure demand remains robust despite concerns that technology companies may be approaching the limits of their spending boom. TSMC CEO sees no sign of a slowdown
• Neutral Sentiment: TSMC also has an approximately $2 billion agreement with GlobalFoundries to manufacture U.S. silicon interposers for advanced AI-chip packaging. The deal supports supply-chain diversification but is unlikely to materially affect near-term earnings.
• Negative Sentiment: Despite the earnings beat, investors appear concerned that much of the AI-driven growth was already reflected in TSM’s valuation. Shares trade near a historically elevated earnings multiple and below their recent high, increasing the risk of profit-taking when results fail to dramatically exceed already aggressive expectations. Why TSM stock is sliding after earnings
• Negative Sentiment: A hotter-than-expected inflation reading and slowing revenue growth reported by Anthropic extended a wider technology and AI-stock selloff. Higher interest-rate concerns and scrutiny of the enormous cost of AI infrastructure are weighing on semiconductor shares, including TSM.

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.

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