Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Jumps 2% on Insider Buying Activity

Key Points

• TSMC shares rose 2% after director Michael Splinter bought 840 shares for about $300,000, increasing his stake by 11.1%.
• October revenue climbed 59.7% year over year to NT$586.89 billion, while reported fourth-quarter revenue guidance of up to $54.3 billion points to continued growth.
• Analysts maintain a broadly positive view: the stock carries a consensus “Buy” rating and an average price target of $533.89.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares traded up 2% during trading on Tuesday after an insider bought additional shares in the company. The company traded as high as $400.21 and last traded at $396.5560. Approximately 13,347,650 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 13,227,292 shares. The stock had previously closed at $388.62.

Specifically, Director Michael R. Splinter acquired 840 shares of the firm's stock in a transaction that occurred on Thursday, November 5th. The stock was bought at an average price of $357.00 per share, for a total transaction of $299,880.00. Following the acquisition, the director directly owned 8,405 shares of the company's stock, valued at $3,000,585. This represents a 11.10% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Susquehanna raised their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday, July 16th. DA Davidson reiterated a "buy" rating and issued a $500.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. 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 objective on the stock. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Finally, Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and a consensus price target of $533.89.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported October revenue of NT$586.89 billion, up 59.7% year over year and 14.7% from September. The company’s role in producing advanced chips for AI customers, including Nvidia and Apple, supports the view that demand remains robust. TSMC's October sales jump as global chip boom rolls on
• Positive Sentiment: Reports say TSMC expects fourth-quarter revenue of up to $54.3 billion, giving investors reason to anticipate continued growth after the strong October result. TSMC's October Sales Climb 14.7% Sequentially
• Positive Sentiment: Director Michael Splinter bought 840 shares for about $300,000, increasing his holdings by 11.1%. The purchase may signal confidence, though it is only one insider transaction. SEC filing on director share purchase
• Neutral Sentiment: TSMC reportedly plans to invest up to $1 billion in OpenAI and Anthropic. The move adds exposure to the AI ecosystem, but also commits capital beyond its core chip-manufacturing business. TSMC to invest up to $1 billion in Anthropic and OpenAI
• Negative Sentiment: Recent reports describe an AI-stock sell-off and market correction, which could weigh on semiconductor shares despite TSMC’s strong sales. The rapid growth may also leave investors with high expectations for upcoming results. AI heavyweights after the sell-off

Taiwan Semiconductor Manufacturing Stock Performance

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 stock has a market cap of $2.06 trillion, a PE ratio of 25.52, a price-to-earnings-growth ratio of 0.80 and a beta of 1.44. The firm has a fifty day moving average price of $431.09 and a 200 day moving average price of $401.08.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly 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 return on equity of 42.84% and a net margin of 51.51%. The business had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. During the same quarter last year, the company earned $2.92 earnings per share. The company's quarterly revenue was up 41.2% on a year-over-year basis. Research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TSM. Fiduciary Advisors Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 200.0% in the third quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 40 shares during the period. Cedar Mountain Advisors LLC lifted its position in Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 30 shares during the period. Markowski Investments bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth about $33,000. Heritage Family Offices LLP acquired a new stake in Taiwan Semiconductor Manufacturing during the third quarter worth about $37,000. Finally, Curry Webb Wealth Management LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the third quarter worth about $39,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics. Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.

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