Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 2.5% - Time to Buy?

Key Points

• TSMC shares rose 2.5% to about $445.33 amid strong semiconductor-sector momentum, with trading volume below its average.
• Growth catalysts include a new Taiwan advanced-packaging park, strong AI-chip demand, and collaboration with ASML and major chipmakers on next-generation tools for larger data-center chips.
• Analysts maintain an overall “Buy” rating with an average price target of $523.22, while TSMC reported $39.89 billion in quarterly revenue, a 50.31% net margin, and a $1.0854 quarterly dividend.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price rose 2.5% during mid-day trading on Monday . The company traded as high as $445.72 and last traded at $445.33. Approximately 9,894,194 shares changed hands during trading, a decline of 26% from the average session volume of 13,345,186 shares. The stock had previously closed at $434.67.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Taiwan broke ground on an advanced-packaging industrial park in Kaohsiung, where TSMC plans to establish technology-validation facilities and a talent-training center. The project should strengthen Taiwan’s chip-supply ecosystem and help address advanced-packaging bottlenecks. Taiwan breaks ground on advanced packaging park anchored by TSMC
• Positive Sentiment: Reports that AMD plans to raise chip prices by 10% because of higher wafer costs suggest strong semiconductor demand and could highlight TSMC’s pricing power as a key supplier. AMD’s gains also lifted other major chip stocks, including TSMC. AMD Rises 5% as Report Flags 10% Chip Price Increase
• Positive Sentiment: TSMC is reportedly working with ASML, Nvidia, Intel, Samsung and SK Hynix to adapt ASML’s next-generation High-NA extreme-ultraviolet tools for larger data-center chips. The effort could improve TSMC’s ability to serve future AI infrastructure demand. ASML and Chip Giants like TSMC Plot a Bigger Canvas for Building AI Chips
• Neutral Sentiment: The Kaohsiung validation and training infrastructure is a long-term investment, with operations reportedly still about three years away. That limits its near-term earnings impact, even though it supports future capacity and workforce development. TSMC Gains as 88.7 Hectares Target Packaging Friction
• Neutral Sentiment: Broader optimism surrounding U.S.-China discussions and stronger Asian semiconductor shares is providing a favorable market backdrop, though it is not a direct change to TSMC’s fundamentals. Stocks advance after Bessent says talks with China were successful

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on TSM. Needham & Company LLC lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Stifel Nicolaus started coverage on shares of 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. Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Finally, Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $523.22.

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 company's 50 day moving average price is $417.39 and its 200-day moving average price is $402.10. The stock has a market cap of $2.31 trillion, a P/E ratio of 32.13, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 25.25%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 1,000 shares of the company's stock in a transaction on Monday, August 3rd. The shares were acquired at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares in the company, valued at $1,026,566.06. This trade represents a 7.66% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Shyue-Shyh Lin purchased 1,000 shares of the company's stock in a transaction that occurred on Tuesday, July 21st. The shares were acquired at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the purchase, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. This represents a 3.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 19,106 shares of company stock worth $1,417,283. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of institutional investors have recently added to or reduced their stakes in the stock. Security National Bank of Sioux City Iowa IA bought a new stake in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at about $49,000. Anchor Investment Management LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 4.5% in the second quarter. Anchor Investment Management LLC now owns 11,377 shares of the semiconductor company's stock worth $5,433,000 after buying an additional 488 shares in the last quarter. Smith Chas P & Associates PA Cpas boosted its position in shares of Taiwan Semiconductor Manufacturing by 3.1% in the second quarter. Smith Chas P & Associates PA Cpas now owns 1,010 shares of the semiconductor company's stock valued at $482,000 after acquiring an additional 30 shares during the period. Miramontes Capital LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $714,000. Finally, Core Capital Management & Research inc. purchased a new position in Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $177,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world's leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.

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