Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Stock Has Consensus Price Target of $524.89

Key Points

• Analysts remain bullish on TSMC: Sixteen analysts collectively rate the stock “Buy,” with a consensus 12-month price target of $524.89. Recent targets include $554 from Bernstein, $590 from Bank of America, and $665 from Barclays.
• AI demand is supporting growth expectations: TSMC’s foundry leadership, strong margins, record sales, and the ramp-up of its advanced 2-nanometer process are key positives ahead of its October 15 earnings report.
• Terafab uncertainty is a near-term risk: Elon Musk indicated Tesla and SpaceX would retain operational control of the Texas facility, reducing expectations that TSMC would secure a major manufacturing role and putting some pressure on the shares.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) has been given a consensus recommendation of "Buy" by the sixteen analysts that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation, twelve have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $524.89.

A number of research analysts recently issued reports on TSM shares. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday. Stifel Nicolaus began 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. Sanford C. Bernstein boosted their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. 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: Analyst support remains firm: Goldman Sachs raised its target to TWD 3,300, while Barclays increased its target to $665 and maintained an “overweight” rating. Goldman Sachs raises target for TSM stock
• Positive Sentiment: AI-related demand continues to support TSMC, with analysts highlighting strong expected third-quarter growth, record recent sales, and the ramp of its advanced 2-nanometer process. The October 15 earnings report will likely focus on revenue growth, margins and production plans. TSMC October 15 earnings preview
• Positive Sentiment: TSMC remains a favored AI investment because of its foundry leadership, roughly 45% net margin, dependable earnings and exposure to rising chip demand from customers such as AMD. Top chip stocks for the AI boom
• Neutral Sentiment: Musk said TSMC could potentially sublease part of the Texas Terafab site, but Tesla and SpaceX would retain ownership and operate the facility themselves. Any commercial benefit for TSMC therefore remains uncertain. Musk rules out TSMC operational role
• Negative Sentiment: The lack of an operational role in Terafab, combined with Intel’s confirmed continued participation, removed speculation that TSMC would displace Intel or secure a substantial manufacturing contract. That clarification was the main near-term pressure on TSM shares. Elon Musk rules out potential TSMC role

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM opened at $472.64 on Thursday. The company's fifty day moving average price is $431.08 and its 200-day moving average price is $412.62. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The firm has a market capitalization of $2.45 trillion, a PE ratio of 34.10, a price-to-earnings-growth ratio of 1.07 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced 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 return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion for the quarter. On average, equities research analysts predict that Taiwan Semiconductor Manufacturing will post 16.56 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 0.9%. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's payout ratio is currently 24.96%.

Insiders Place Their Bets

In other news, VP Bor-Zen Tien bought 1,000 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the acquisition, the vice president directly owned 14,051 shares in the company, valued at $1,026,566.06. This trade represents a 7.66% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Lipen Yuan purchased 350 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were purchased at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the acquisition, the vice president directly owned 2,000 shares of the company's stock, valued at $147,160. This represents a 21.21% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have purchased 14,559 shares of company stock worth $1,067,931. Corporate insiders own 1.11% of the company's stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently modified their holdings of the business. Janus Henderson Group PLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 7.7% during the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company's stock worth $2,497,638,000 after buying an additional 594,780 shares during the period. Tiger Global Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the period. Invesco Ltd. grew its stake in Taiwan Semiconductor Manufacturing by 1.1% in the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company's stock valued at $1,131,025,000 after acquiring an additional 40,842 shares during the period. Sei Investments Co. increased its holdings in Taiwan Semiconductor Manufacturing by 11.8% in the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock worth $875,802,000 after acquiring an additional 274,389 shares in the last quarter. Finally, Deutsche Bank AG increased its holdings in Taiwan Semiconductor Manufacturing by 94.3% in the 4th quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company's stock worth $688,118,000 after acquiring an additional 1,098,727 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

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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