DA Davidson Reaffirms Buy Rating for Taiwan Semiconductor Manufacturing (NYSE:TSM)

Key Points

• DA Davidson reissued a Buy rating on Taiwan Semiconductor (TSM) with a $450 price target — implying roughly a 21.8% upside — while multiple other brokers have raised targets and the MarketBeat consensus rating is Buy with an average target of $401.43.
• TSMC recently traded at $369.36 with a market cap of about $1.91 trillion and reported last-quarter EPS of $3.11 and revenue of $30.65 billion, showing strong profitability (net margin 45.13%, ROE 34.89%) that underpins continued analyst bullishness.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at DA Davidson in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $450.00 target price on the semiconductor company's stock. DA Davidson's price objective suggests a potential upside of 21.83% from the company's previous close.

Several other equities analysts have also recently commented on TSM. Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an "overweight" rating in a research report on Friday, January 16th. Dbs Bank upgraded shares of Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research report on Friday, January 23rd. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Sanford C. Bernstein reissued an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Finally, Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Two 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 stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and a consensus target price of $401.43.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM stock traded up $6.01 during trading hours on Friday, reaching $369.36. 15,142,846 shares of the company were exchanged, compared to its average volume of 13,969,341. The stock's fifty day moving average is $354.34 and its two-hundred day moving average is $320.99. Taiwan Semiconductor Manufacturing has a fifty-two week low of $145.84 and a fifty-two week high of $390.20. The company has a market cap of $1.91 trillion, a price-to-earnings ratio of 34.69, a P/E/G ratio of 1.15 and a beta of 1.35. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. Sell-side analysts forecast that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current fiscal year.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the purchase, the vice president directly owned 9,051 shares in the company, valued at approximately $506,222.43. This trade represents a 12.42% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.11% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently modified their holdings of TSM. Quattro Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth $25,000. Hilton Head Capital Partners LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth $27,000. Stephens Consulting LLC raised its holdings in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 41 shares during the last quarter. Strategic Advocates LLC raised its holdings in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth $29,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Q1 results beat consensus: EPS of $3.49 and revenue of $35.49B (+40% Y/Y); company raised Q2 revenue guidance to roughly $39.0–$40.2B, signaling continued AI-driven demand. Taiwan Semiconductor Q1 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Record profitability: net profit jumped ~58% Y/Y, reinforcing that hyperscaler AI spending is sustaining a multi-quarter boom. TSMC Q1 profit jumps 58% to record, beats expectations
• Positive Sentiment: Advanced-node strength and margins: management highlighted strong 3nm demand, N3 ramp contributing ~25% of wafer revenue and gross margins >66%, supporting pricing power. TSMC: Strong Results, Margin Story Unchanged (At Least For Now)
• Positive Sentiment: Analyst momentum: Needham raised its price target substantially, reflecting bullish analyst views on longer-term AI-driven revenue. Needham price target raise coverage
• Neutral Sentiment: Industry comparison: analyses comparing TSM to equipment leader ASML position TSM as the larger AI-capacity beneficiary, useful for longer-term portfolio allocation but not stock-specific near-term news. TSMC (TSM) vs ASML Stock: Analyzing the Superior AI Chip Investment for Long-Term Growth
• Neutral Sentiment: Corporate filings & housekeeping: TSMC filed its Form 20-F and disclosed small IFRS reporting differences and a revised annual meeting agenda — routine items to monitor but unlikely to drive major price moves. TSMC Details 2025 IFRS Reporting Differences in April 16 Filing
• Negative Sentiment: Capacity & competitive risk: critics warn that chronic capacity constraints and long build times are pushing some customers to rivals (Samsung/Intel); elevated capex and multi-year expansion timelines create execution risk and potential share loss. TSMC: Foundry Monopoly Is Cracking As Rivals Catch Up (Rating Downgrade)
• Negative Sentiment: Valuation & muted rally: despite blowout results, some coverage notes the stock didn't spike because valuation looks stretched and geopolitical/macro risks (Middle East tensions, potential cost pressure) temper near-term upside. TSMC Stock: Q1 2026 Earnings Didn't Fuel A Rally, Here's Why

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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