Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Receives Consensus Rating of "Buy" from Analysts

Key Points

• Analysts remain bullish on TSMC: Seventeen analysts give the stock a consensus “Buy” rating, with an average 12-month price target of $523.22 versus a recent price of $433.09.
• AI demand is driving strong growth: TSMC reported August revenue of NT$514.81 billion, up 53.3% year over year, as hyperscaler and enterprise orders pushed production capacity near full utilization.
• Valuation and macroeconomic risks remain: Shares trade at roughly 31 times earnings, and higher Treasury yields, potential Federal Reserve tightening and already-priced-in AI growth could limit further gains despite strong operating results.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) has earned an average recommendation of "Buy" from the seventeen analysts that are presently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and three have assigned a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $523.2222.

Several brokerages recently weighed in on TSM. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Needham & Company LLC increased their price target on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. DA Davidson raised their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a "buy" rating in a report on Friday, July 17th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Bank of America upped their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC reported August 2026 revenue of NT$514.81 billion, approximately $16.35 billion, up 53.3% year over year and 10.1% from July. The record result, driven by strong orders from hyperscalers and enterprise customers, indicates that AI-chip demand remains robust and TSMC’s production capacity is operating near full utilization. TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip Demand
• Positive Sentiment: The revenue surge is favorable for major customers such as Nvidia because it suggests TSMC can continue supporting high-performance computing and AI-accelerator production. Tight advanced-packaging and foundry capacity also strengthens TSMC’s pricing power and supports its exceptionally high margins. TSMC Just Delivered Fantastic News for Nvidia Shareholders
• Positive Sentiment: TSMC and ASML are collaborating on large-format photomasks for High-NA EUV technology, with potential long-term benefits for advanced-node productivity, manufacturing costs and AI-chip output. TSMC’s Arizona operations and planned global investment may also reduce geographic concentration concerns. TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV
• Positive Sentiment: Analysts remain constructive, with a consensus Buy rating and an average price target of $523.22. Erste Group also modestly raised its fiscal 2027 EPS forecast, while CEO Che-Chia Wei’s recent share purchase provides a small additional signal of management confidence. TSMC CEO Acquires Shares
• Neutral Sentiment: Despite the strong operating data, TSMC shares recently underperformed the broader market because investors may already be pricing in several years of AI growth. Articles identify valuation and future gross-margin performance as key numbers that could determine the stock’s next move. TSMC Price Prediction
• Negative Sentiment: Higher Treasury yields and expectations for a Federal Reserve rate hike are pressuring high-growth technology valuations. The broader retreat in AI-related stocks has limited the market’s response to TSMC’s record sales, while future High-NA EUV benefits will not arrive at scale for several years. Fed Rate Hike Close To A Lock

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Shyue-Shyh Lin bought 2,000 shares of the company's stock in a transaction dated Sunday, July 19th. The shares were acquired at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the completion of the transaction, the vice president directly owned 28,269 shares in the company, valued at $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Lipen Yuan bought 1,000 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president owned 6,000 shares of the company's stock, valued at approximately $447,000. This trade represents a 20.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 21,106 shares of company stock valued at $1,571,733. Insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Brighton Jones LLC increased its stake in Taiwan Semiconductor Manufacturing by 20.9% during the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock worth $2,159,000 after buying an additional 1,892 shares in the last quarter. Gamco Investors INC. ET AL acquired a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $701,000. Bank of Nova Scotia lifted its position in shares of Taiwan Semiconductor Manufacturing by 12.8% in the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock valued at $3,556,000 after acquiring an additional 1,784 shares in the last quarter. FWL Investment Management LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 26.5% in the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after acquiring an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter worth approximately $270,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Stock Up 1.2%

TSM stock opened at $433.09 on Friday. Taiwan Semiconductor Manufacturing has a one year low of $257.98 and a one year high of $479.00. 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 firm's fifty day moving average is $418.99 and its 200 day moving average is $400.34. The firm has a market cap of $2.25 trillion, a PE ratio of 31.25, a P/E/G ratio of 0.96 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The business had revenue of $39.89 billion during the quarter. On average, research analysts forecast that Taiwan Semiconductor Manufacturing will post 16.55 EPS 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 represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's payout ratio is presently 21.43%.

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 leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.

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