Taiwan Semiconductor Manufacturing Company Ltd. (TSM) - What Are Researchers Thinking About This Stock?

Key Points

• Analysts remain bullish on TSMC: Sixteen firms give the stock a consensus “Buy” rating, including 12 buys and three strong buys, with an average 12-month price target of $528.78 versus a recent price of $405.05.
• Strong operating performance supports the investment case: TSMC exceeded quarterly earnings and revenue estimates, with EPS of $4.60, revenue of $46.72 billion and year-over-year revenue growth of 41.2%, driven by demand for advanced chips and AI applications.
• Investors should also weigh valuation and execution risks: Insiders and several institutional investors added shares, but the company reduced its quarterly dividend, while heavy capital spending, AI-demand uncertainty and operational challenges could pressure future returns.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have been given a consensus rating of "Buy" by the sixteen ratings firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a hold recommendation, twelve have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $528.78.

Several equities research analysts recently issued reports on the company. TD Cowen boosted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a report on Friday, July 17th. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a "buy" rating and a $515.00 price target for the company. Needham & Company LLC upped their price target on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a "buy" rating in a research note on Thursday, October 15th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Finally, Sanford C. Bernstein upped their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th.

Insiders Place Their Bets

In other news, VP Lipen Yuan bought 350 shares of the stock in a transaction on Tuesday, August 18th. The stock was acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following the acquisition, the vice president directly owned 2,000 shares in the company, valued at approximately $147,160. This trade represents a 21.21% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders acquired 6,043 shares of company stock worth $457,926 in the last three months. 1.11% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of TSM. Pathway Financial Advisers LLC increased its stake in Taiwan Semiconductor Manufacturing by 19.6% in the third quarter. Pathway Financial Advisers LLC now owns 862 shares of the semiconductor company's stock valued at $393,000 after purchasing an additional 141 shares during the last quarter. Kestra Private Wealth Services LLC lifted its stake in Taiwan Semiconductor Manufacturing by 2.3% during the third quarter. Kestra Private Wealth Services LLC now owns 76,446 shares of the semiconductor company's stock valued at $34,874,000 after purchasing an additional 1,724 shares during the last quarter. Northeast Investment Management grew its holdings in shares of Taiwan Semiconductor Manufacturing by 19.6% during the 3rd quarter. Northeast Investment Management now owns 69,418 shares of the semiconductor company's stock valued at $31,668,000 after acquiring an additional 11,368 shares in the last quarter. Chicago Partners Investment Group LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 19.3% in the third quarter. Chicago Partners Investment Group LLC now owns 9,070 shares of the semiconductor company's stock valued at $3,796,000 after purchasing an additional 1,465 shares during the last quarter. Finally, Richardson Financial Services Inc. grew its position in Taiwan Semiconductor Manufacturing by 5.9% in the third quarter. Richardson Financial Services Inc. now owns 597 shares of the semiconductor company's stock valued at $272,000 after acquiring an additional 33 shares during the period. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Stock Down 0.3%

Shares of Taiwan Semiconductor Manufacturing stock opened at $405.05 on Monday. The company has a market cap of $2.10 trillion, a P/E ratio of 26.07, a PEG ratio of 0.82 and a beta of 1.44. The company's fifty day simple moving average is $435.00 and its two-hundred day simple moving average is $399.49. Taiwan Semiconductor Manufacturing has a 12-month low of $266.82 and a 12-month 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.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, topping the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The company had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. During the same quarter in the prior year, the firm posted $2.92 EPS. Taiwan Semiconductor Manufacturing's quarterly revenue was up 41.2% compared to the same quarter last year. Research analysts anticipate that Taiwan Semiconductor Manufacturing will post 17.07 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.1%. This is a drop from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's dividend payout ratio is 22.27%.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC continues to benefit from its position as the world’s leading advanced-chip foundry. Its revenue has consistently exceeded Applied Materials’ over the past eight quarters and has shown a steadier upward trend, supporting the view that demand for leading-edge processors remains strong. Applied Materials vs. Taiwan Semiconductor Manufacturing
• Positive Sentiment: Long-term investor articles continue to identify TSMC as a potential multibagger because of its exposure to AI accelerators, advanced manufacturing and sustained customer demand. The thesis assumes that earnings and cash flow can continue compounding through 2030. What a $10,000 Investment in TSMC Stock Will Be Worth by 2030
• Positive Sentiment: Bell Global Equities Fund continues to hold TSMC, indicating that an institutional investor views the company’s scale, technology leadership and AI exposure as attractive despite the recent volatility. Why Bell Global Equities Fund Continues to Favor TSMC
• Positive Sentiment: Taiwan’s semiconductor industry supports a government review of potentially restarting nuclear power plants. Improved electricity availability and reliability could help address one of TSMC’s key operational risks as chip-fabrication capacity expands. Taiwan Semiconductor Industry Group Backs Nuclear Power Review
• Neutral Sentiment: TSMC remains one of the most closely watched semiconductor stocks, reflecting strong investor interest but also heightened sensitivity to earnings expectations, valuation and news affecting the AI supply chain. TSMC Is Attracting Investor Attention
• Negative Sentiment: Investors are increasingly considering whether AI spending could slow in 2027. A deceleration would pressure the semiconductor sector, although TSMC may hold up better than companies with less differentiated positions because it controls a critical manufacturing bottleneck. If AI Spending Slows in 2027
• Negative Sentiment: Bearish commentary argues that TSMC is spending heavily to defend its lead, raising concerns about capital intensity, execution and whether future returns will justify the investment. Those concerns may be contributing to pressure on the shares after their strong run. TSMC: Spending Its Lead to Keep It

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.

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