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

Key Points

• Analysts remain bullish on TSMC: Sixteen research firms give the stock a consensus “Buy” rating, with 11 buys, three strong buys and two holds. The average 12-month price target is $524.25, though recent targets range from $440 to $650.
• TSMC reported quarterly revenue of $39.89 billion and earnings of $4.28 per share, alongside a 50.31% net margin and 39.37% return on equity. Shares opened at $413.87, down 4%, while the company pays an annualized dividend of $4.34, yielding about 1%.
• AI chip demand is the primary growth catalyst: Demand for advanced nodes, including 2-nanometer production, and expanding Arizona operations are supporting the long-term outlook. Insider purchases and additional institutional investment provide further confidence, although valuation and semiconductor-cycle volatility remain risks.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have been assigned a consensus rating of "Buy" from the sixteen research firms that are currently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $524.25.

A number of equities research analysts have recently weighed in on the company. TD Cowen boosted their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a report on Friday, July 17th. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. DA Davidson boosted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Friday, July 17th. 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. Finally, Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th.

Taiwan Semiconductor Manufacturing Stock Down 4.0%

NYSE:TSM opened at $413.87 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.25 and a current ratio of 2.46. The company has a market capitalization of $2.15 trillion, a price-to-earnings ratio of 29.86, a price-to-earnings-growth ratio of 0.98 and a beta of 1.39. Taiwan Semiconductor Manufacturing has a one year low of $223.70 and a one year high of $479.00. The stock has a 50-day simple moving average of $425.75 and a 200 day simple moving average of $391.94.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%.The firm had revenue of $39.89 billion for the quarter. Sell-side analysts predict that Taiwan Semiconductor Manufacturing will post 16.44 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, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio is 21.43%.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: U.S. manufacturing expansion is gaining momentum. Bank of America said TSMC’s Arizona operations are progressing and could become increasingly profitable as demand for advanced AI chips grows. This supports long-term revenue diversification and may reduce concerns about the company’s dependence on Taiwan. BofA Sends Bullish Message For Taiwan Semiconductor Stock Fans
• Positive Sentiment: Institutional investors are rotating toward TSMC. Filings show David Tepper’s Appaloosa Management reduced its Micron position while adding to TSMC for a sixth consecutive quarter. Other hedge funds also shifted capital away from Broadcom and toward TSMC, signaling continued confidence in the company’s AI infrastructure exposure. David Tepper Appaloosa TSMC Investment Broadcom Hedge Fund Caution
• Positive Sentiment: AI-related demand remains a key growth driver. Reports cite robust demand for 2-nanometer production and advanced chips, while Cerebras’ expanding AI-inference business relies on TSMC-manufactured 5-nanometer wafers. Arizona output is also expected to contribute more meaningfully to revenue and profit this year. TSMC Arizona Operations Profit Report
• Positive Sentiment: Insider buying and analyst optimism provide additional support. Open-market purchases by TSMC insiders, together with favorable guidance and AI-driven analyst upgrades, reinforce the bullish long-term view. Quantitative analysis also points to a potential recovery toward $450 in September, although that forecast is not guaranteed. TSMC Insider Buying TSMC September Price Case
• Neutral Sentiment: TSMC’s strong profitability and central role in AI hardware make it attractive to growth investors, but its elevated valuation and exposure to semiconductor-cycle volatility may be contributing to near-term caution.

Insiders Place Their Bets

In related news, VP Lipen Yuan bought 1,000 shares of the stock in a transaction dated Monday, June 22nd. The stock was bought 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 trade represents a 25.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Shyue-Shyh Lin purchased 2,000 shares of the company's stock in a transaction dated Sunday, July 19th. The shares were bought at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the completion of the transaction, the vice president directly owned 28,269 shares in the company, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 16,312 shares of company stock valued at $1,207,238 over the last quarter. Insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Twin City Private Wealth LLC grew its stake in Taiwan Semiconductor Manufacturing by 0.3% during the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company's stock worth $2,479,000 after buying an additional 25 shares during the last quarter. Graves Light Lenhart Wealth Inc. increased its position in Taiwan Semiconductor Manufacturing by 3.4% in the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company's stock worth $359,000 after buying an additional 25 shares during the period. OFS Enterprise LLC lifted its stake in Taiwan Semiconductor Manufacturing by 4.0% in the second quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company's stock valued at $312,000 after buying an additional 25 shares during the last quarter. Wealthcare Capital Partners LLC lifted its stake in Taiwan Semiconductor Manufacturing by 1.0% in the second quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company's stock valued at $1,244,000 after buying an additional 25 shares during the last quarter. Finally, Elser Financial Planning Inc boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.4% during the second quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company's stock valued at $516,000 after acquiring an additional 25 shares during the period. 16.51% of the stock is currently owned by 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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