Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 1.8% - Time to Buy?

Key Points

• TSMC shares rose 1.8% to about $420.24, while trading volume was slightly below average. Analysts maintain a generally bullish view, with an average “Buy” rating and a $528.78 price target.
• AI and high-performance computing are driving growth: These markets generated roughly 68% of quarterly revenue, while potential Nvidia-related demand for TSMC’s 3-nanometer process could further expand its advanced-chip business.
• TSMC plans significant capacity expansion, investing approximately $60 billion–$64 billion in factories and equipment this year and maintaining elevated spending through 2028. The company reported $46.87 billion in quarterly revenue and $4.62 in EPS, but reduced its quarterly dividend to $1.0854.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares were up 1.8% during trading on Monday. The stock traded as high as $427.16 and last traded at $420.2360. 12,250,462 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 13,094,863 shares. The stock had previously closed at $412.61.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analyst upgrade supports the shares: Zacks upgraded TSMC to a Rank #1, or “Strong Buy,” citing improving earnings prospects and the potential for upward estimate revisions. TSMC Upgraded to Strong Buy
• Positive Sentiment: AI and high-performance computing remain powerful growth drivers: High-performance computing generated approximately 68% of TSMC’s quarterly revenue, with growth outpacing the company’s overall expansion. Reports also describe AI-chip demand as exceeding available supply. The Most Important Number in Taiwan Semiconductor's Earnings Report
• Positive Sentiment: Potential Nvidia-related business could deepen TSMC’s role in AI infrastructure: Nvidia reportedly wants Samsung, Micron and SK Hynix to use TSMC’s 3-nanometer process for next-generation high-bandwidth-memory base dies. This could create additional demand for TSMC’s advanced manufacturing capacity. Nvidia Wants Top Memory Makers to Use TSMC for Next-Generation HBM Base Dies
• Positive Sentiment: Capacity investment signals confidence: TSMC plans to spend roughly $60 billion to $64 billion on factories and equipment this year, with spending expected to remain elevated through 2028 to meet sustained customer demand. TSMC Is Spending up to $64 Billion This Year

Analyst Ratings Changes

Several brokerages have recently issued reports on TSM. Bank of America upped their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. DA Davidson reiterated a "buy" rating and issued a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday. 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 research note on Friday, July 17th. Barclays increased their price objective on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an "overweight" rating in a report on Friday. Finally, Needham & Company LLC lifted their price target on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a "buy" rating in a report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The company's 50 day moving average is $434.71 and its 200 day moving average is $417.82. The firm has a market capitalization of $2.18 trillion, a price-to-earnings ratio of 27.04, a P/E/G ratio of 0.85 and a beta of 1.37. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The company had revenue of $46.87 billion for the quarter. On average, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.90 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.0%. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing's payout ratio is 22.27%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien acquired 3,000 shares of the stock in a transaction on Tuesday, July 21st. The stock was acquired at an average cost of $74.39 per share, for a total transaction of $223,170.00. Following the completion of the transaction, the vice president directly owned 4,000 shares in the company, valued at approximately $297,560. This trade represents a 300.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average cost of $74.50 per share, with a total value of $74,500.00. Following the acquisition, the vice president directly owned 6,000 shares in the company, valued at $447,000. This represents a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 13,043 shares of company stock worth $970,386 over the last three months. Corporate insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of TSM. Prairie Advisory LLC grew its holdings in Taiwan Semiconductor Manufacturing by 81.6% during the third quarter. Prairie Advisory LLC now owns 2,624 shares of the semiconductor company's stock worth $1,197,000 after buying an additional 1,179 shares in the last quarter. Capital Square LLC raised its position in Taiwan Semiconductor Manufacturing by 3.0% in the 3rd quarter. Capital Square LLC now owns 1,644 shares of the semiconductor company's stock valued at $750,000 after buying an additional 48 shares during the last quarter. OceanIQ Capital LLC raised its position in Taiwan Semiconductor Manufacturing by 0.6% in the 3rd quarter. OceanIQ Capital LLC now owns 8,690 shares of the semiconductor company's stock valued at $3,868,000 after buying an additional 50 shares during the last quarter. Independent Wealth Network Inc. raised its position in Taiwan Semiconductor Manufacturing by 1.8% in the 3rd quarter. Independent Wealth Network Inc. now owns 1,459 shares of the semiconductor company's stock valued at $666,000 after buying an additional 26 shares during the last quarter. Finally, Jackson Square Capital LLC lifted its stake in Taiwan Semiconductor Manufacturing by 2.1% during the 3rd quarter. Jackson Square Capital LLC now owns 8,490 shares of the semiconductor company's stock valued at $3,873,000 after acquiring an additional 173 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors.

About Taiwan Semiconductor Manufacturing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.