Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 2.5% - Here's Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price was up 2.5% during trading on Thursday . The company traded as high as $429.64 and last traded at $427.9530. Approximately 12,717,045 shares changed hands during trading, a decline of 7% from the average session volume of 13,687,663 shares. The stock had previously closed at $417.69.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: More 3-nanometer AI business: TSMC is reportedly preparing to manufacture Xiaomi’s Xring O3 processor using its 3nm process. The deal broadens TSMC’s customer base in AI-enabled consumer devices and autonomous-driving applications, reinforcing demand for its highest-margin technology. Why Is Taiwan Semiconductor Manufacturing Winning More 3nm AI Chip Work?
• Positive Sentiment: Institutional buying: A hedge fund sold Sandisk shares and purchased TSM stock, highlighting preference for TSMC’s exposure to the semiconductor and AI infrastructure cycle. This Hedge Fund Just Sold Sandisk and Bought Taiwan Semiconductor Manufacturing Stock
• Positive Sentiment: Strong operating momentum: A reported 44.7% July revenue increase underscores powerful AI-related demand and supports expectations for robust results and guidance. TSMC's July Surge Raises the Bar for Nvidia's Foundry
• Positive Sentiment: Long-term image-sensor opportunity: TSMC and Sony agreed to invest $4.7 billion in a joint venture for next-generation smartphone image sensors, with mass production expected in 2029. The project could add another strategic growth avenue, although revenue is several years away. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the Eyes of AI Machines
• Neutral Sentiment: Valuation and execution remain key: Analysts continue to view TSMC as a core beneficiary of the AI buildout, but future returns depend on sustained demand, capacity expansion and whether its valuation discount to major customers narrows. Price Prediction: TSM Will Trade at This Price in 2027
• Negative Sentiment: Expectations are elevated: TSMC’s rapid growth raises the bar for upcoming Nvidia-related capacity and demand commentary. Any ordinary guidance or signs of capacity constraints could trigger profit-taking despite the favorable long-term outlook. TSMC Jumps Before Nvidia Tests Its Capacity Bet

Analysts Set New Price Targets

TSM has been the topic of a number of analyst reports. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Bank of America increased their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 12th. Finally, Sanford C. Bernstein lifted their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Price Performance

The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm's 50-day moving average is $424.58 and its 200-day moving average is $395.38. The company has a market cap of $2.22 trillion, a PE ratio of 30.88, a PEG ratio of 0.96 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company 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 $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, August 3rd. The shares were bought at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the purchase, the vice president directly owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Lipen Yuan acquired 1,000 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, with a total value of $74,500.00. Following the acquisition, the vice president owned 6,000 shares of the company's stock, valued at $447,000. This represents a 20.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought 17,662 shares of company stock worth $1,307,491 over the last ninety days. 1.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TSM. Brighton Jones LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock worth $2,159,000 after buying an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL purchased a new position in Taiwan Semiconductor Manufacturing during the second quarter valued at $701,000. Bank of Nova Scotia boosted its holdings in Taiwan Semiconductor Manufacturing by 12.8% in the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock worth $3,556,000 after acquiring an additional 1,784 shares in the last quarter. FWL Investment Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 26.5% in the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock worth $57,000 after acquiring an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter worth $270,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.

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.

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