Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Given Average Rating of "Buy" by Analysts

Key Points

• Fifteen analysts give TSMC a consensus Buy rating (10 buys, 3 strong buys, 2 holds) with an average 12‑month price target of $391.43.
• TSMC posted a strong quarter — $3.11 EPS, $30.65B revenue and a 45.1% net margin — and saw record February revenue driven by AI demand and tight 3nm capacity, reinforcing its AI infrastructure positioning.
• Near‑term headwinds include a recent share pullback (trading around $329), signs of institutional trimming and mixed analyst actions, plus competitive pressure from large rivals like Samsung’s major AI chip investment.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) has received a consensus rating of "Buy" from the fifteen ratings firms that are covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating, ten have given a buy rating and three have assigned a strong buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $391.4286.

A number of brokerages have commented on TSM. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. Freedom Capital raised Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research note on Thursday, January 15th. Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Finally, Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday.

Taiwan Semiconductor Manufacturing Trading Down 2.8%

Shares of NYSE:TSM opened at $329.21 on Friday. The firm has a fifty day moving average of $348.66 and a two-hundred day moving average of $309.66. The firm has a market capitalization of $1.71 trillion, a P/E ratio of 30.91, a price-to-earnings-growth ratio of 0.90 and a beta of 1.29. Taiwan Semiconductor Manufacturing has a 12-month low of $134.25 and a 12-month high of $390.20. The company has a quick ratio of 2.42, a current ratio of 2.62 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. The business had revenue of $30.65 billion for the quarter. On average, equities analysts expect that Taiwan Semiconductor Manufacturing will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be issued a $0.9503 dividend. The ex-dividend date is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a yield of 1.2%. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 28.36%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently bought and sold shares of the stock. Childress Capital Advisors LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 145.3% during the third quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company's stock valued at $891,000 after purchasing an additional 1,891 shares during the period. Shannon River Fund Management LLC bought a new position in Taiwan Semiconductor Manufacturing in the third quarter worth $2,430,000. Vanguard Personalized Indexing Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 9.4% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company's stock worth $28,470,000 after buying an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in Taiwan Semiconductor Manufacturing by 28.6% during the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company's stock worth $10,394,000 after buying an additional 8,284 shares in the last quarter. Finally, Hollencrest Capital Management increased its holdings in Taiwan Semiconductor Manufacturing by 125.3% in the 3rd quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company's stock valued at $1,457,000 after buying an additional 2,901 shares during the period. 16.51% of the stock is currently owned by institutional investors.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record February revenue and rising AI demand: social posts and market commentary highlighted TSMC’s February revenue surge (roughly +30% YoY to a record monthly level), driven by AI chip ramp and 3nm capacity tightness — a near‑term growth catalyst. TSMC Stock (TSM) Opinions on February Revenue Surge
• Positive Sentiment: Flow tailwinds from non‑US allocation: BofA/market commentary indicates long‑only funds shifted into non‑U.S. equities in Feb, with TSMC among top beneficiaries — supports demand for the stock from global active managers. Long-Only Funds Shift to Non-US Stocks, TSMC (TSM) Stays at the Top
• Positive Sentiment: Analyst conviction and AI thematic positioning: multiple outlets and analysts continue to position TSMC as a core AI infrastructure play (mentions in “best AI stocks” and buy/positive notes remain common), supporting longer‑term upside expectations. What Are the Best AI Stocks to Buy While Big Tech Is Spending $690 Billion on Infrastructure?
• Neutral Sentiment: Investor attention and resilience narratives: media coverage emphasizes TSMC’s strong market position and resilience amid dynamic conditions — keeps the stock on screen for momentum traders but is not new fundamental news. Taiwan Semiconductor Manufacturing NYSE: TSM Stays Resilient In Dynamic Market Conditions
• Neutral Sentiment: Zacks and other outlets are keeping TSMC in the spotlight, generating searches and chatter — useful for volume but mixed for directional conviction. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is Attracting Investor Attention
• Negative Sentiment: Large institutional trimming: filings summarized by Quiver show major managers (e.g., FMR, Goldman, others) significantly reduced positions in recent quarters — raising concerns about profit‑taking and reducing a base of committed holders. TSMC Stock (TSM) Opinions on February Revenue Surge
• Negative Sentiment: Analyst downgrade and mixed headlines: Zacks downgraded TSMC from “strong‑buy” to “hold,” which can trigger short‑term selling and reduce momentum. Zacks.com
• Negative Sentiment: Competitive and client risks: Samsung’s large $73B AI chip investment and reports of Tesla pursuing alternative chip supply/sovereign supply chains are reminders of competitive pressures and customer diversification risks. Samsung Stock Surges on Massive $73B AI Chip Investment Plan Tesla Just Snubbed TSMC — Musk Is Quietly Building A Sovereign Chip Chain

About Taiwan Semiconductor Manufacturing

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.

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