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

Key Points

• TSMC has a consensus analyst rating of "Buy" from 16 covering firms, with an average 12-month price target of $490. Recent moves included higher targets from Susquehanna, DA Davidson, and Barclays, plus a rating upgrade from Wall Street Zen.
• The company reported strong recent earnings, posting $4.28 EPS on $39.89 billion in revenue, with a net margin of 50.31% and return on equity of 40.88%. Analysts also expect TSMC to earn 16.34 EPS for the current fiscal year.
• TSMC raised its quarterly dividend to $1.1136 per share from $0.95, bringing the annualized payout to $4.45 and the dividend yield to 1.1%. The increase reflects a modest payout ratio of 21.43%.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have received a consensus rating of "Buy" from the sixteen analysts that are presently covering the stock, Marketbeat reports. Two analysts have rated the stock with a hold rating, eleven have given a buy rating and three have given a strong buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $490.00.

A number of research firms recently commented on TSM. Susquehanna increased their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research report on Thursday, July 16th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 18th. DA Davidson increased their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a "buy" rating in a report on Friday, July 17th. Finally, Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a research report on Friday, July 17th.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM opened at $403.18 on Friday. The firm has a market capitalization of $2.09 trillion, a P/E ratio of 29.09, a P/E/G ratio of 0.96 and a beta of 1.36. Taiwan Semiconductor Manufacturing has a 52 week low of $223.70 and a 52 week high of $479.00. The stock has a 50 day moving average price of $427.67 and a two-hundred day moving average price of $381.72. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%. Equities analysts forecast that Taiwan Semiconductor Manufacturing will post 16.34 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is 21.43%.

Insiders Place Their Bets

In other news, VP Tzu-Sou Chuang sold 200,000 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, June 22nd. The stock was acquired at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the acquisition, the vice president owned 5,000 shares of the company's stock, valued at $395,950. This represents a 25.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 6,857 shares of company stock valued at $512,334 in the last 90 days. 1.11% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the business. Brighton Jones LLC boosted its position in Taiwan Semiconductor Manufacturing by 20.9% during the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock worth $2,159,000 after purchasing an additional 1,892 shares during the period. Gamco Investors INC. ET AL bought a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $701,000. Bank of Nova Scotia raised its position in shares of 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 valued at $3,556,000 after purchasing an additional 1,784 shares during the period. FWL Investment Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 26.5% during the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after buying an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at approximately $270,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record AI-driven earnings, with strong margins and guidance, and raised its 2026 revenue growth outlook to above 40%, reinforcing that demand for advanced chips remains robust. Article Title
• Positive Sentiment: The company committed another $100 billion to U.S. chipmaking, signaling confidence in long-term AI chip demand and expanding its strategic footprint in America. Article Title
• Positive Sentiment: Analysts and market commentary continue to highlight TSMC as a key beneficiary of the AI infrastructure buildout, with pricing power and demand for 2-nanometer technology supporting the bullish case. Article Title
• Neutral Sentiment: TSMC’s planned price increases for 2027 suggest strong pricing power, but the move is also fueling debate about whether AI chip customers can absorb higher costs. Article Title
• Neutral Sentiment: Broader semiconductor stocks are pulling back after a strong 2026 run as investors take profits and reassess valuations following the AI-fueled rally. Article Title
• Negative Sentiment: Intel’s strong earnings were overshadowed by its higher 2026 capital spending plans, adding to concerns that the AI buildout may require heavier spending across the chip sector and pressuring sentiment on semiconductor stocks. Article Title

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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