Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Receives $258.33 Average Target Price from Analysts

Key Points

• Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) has received a consensus rating of "Buy" from four equities research analysts, with an average 12-month price target of $258.33.
• The company recently reported earnings of $2.47 EPS for the quarter, exceeding analysts' expectations, alongside a revenue of $30.07 billion, which was also above estimated figures.
• Taiwan Semiconductor has announced an increase in its quarterly dividend to $0.8348, reflecting an annualized yield of 1.5%, up from the previous dividend of $0.65.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have been assigned a consensus rating of "Buy" from the four research firms that are currently covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a buy recommendation. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $258.3333.

Several research analysts have weighed in on TSM shares. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Needham & Company LLC restated a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Susquehanna boosted their price objective on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research note on Monday, July 14th. Finally, Barclays reissued an "overweight" rating and set a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, June 3rd.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM traded up $3.07 during trading hours on Wednesday, reaching $231.46. 7,181,856 shares of the company traded hands, compared to its average volume of 9,984,861. The stock has a fifty day simple moving average of $235.48 and a 200 day simple moving average of $200.16. The stock has a market capitalization of $1.20 trillion, a PE ratio of 26.39, a price-to-earnings-growth ratio of 1.10 and a beta of 1.23. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. Taiwan Semiconductor Manufacturing has a fifty-two week low of $134.25 and a fifty-two week high of $248.28.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.13 by $0.34. The business had revenue of $30.07 billion for the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The company's revenue was up 44.4% on a year-over-year basis. During the same period last year, the business posted $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, research analysts predict that Taiwan Semiconductor Manufacturing will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be given a $0.8348 dividend. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a yield of 1.4%. Taiwan Semiconductor Manufacturing's payout ratio is presently 28.16%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently modified their holdings of TSM. New Vernon Capital Holdings II LLC boosted its position in Taiwan Semiconductor Manufacturing by 16,500.0% during the first quarter. New Vernon Capital Holdings II LLC now owns 6,707,064 shares of the semiconductor company's stock worth $1,113,373,000 after acquiring an additional 6,666,660 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Taiwan Semiconductor Manufacturing by 55.6% during the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock valued at $2,872,814,000 after purchasing an additional 6,180,445 shares during the last quarter. Nuveen LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the first quarter valued at $482,676,000. Jennison Associates LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 36.8% during the 1st quarter. Jennison Associates LLC now owns 9,509,032 shares of the semiconductor company's stock valued at $1,578,499,000 after buying an additional 2,559,512 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its position in shares of Taiwan Semiconductor Manufacturing by 31.5% in the 1st quarter. Alliancebernstein L.P. now owns 8,864,014 shares of the semiconductor company's stock worth $1,471,426,000 after acquiring an additional 2,121,758 shares during the period. 16.51% of the stock is currently owned by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.