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

Key Points

• Analysts remain bullish on TSMC, with 15 brokerages giving the stock a consensus rating of “Buy.” The average 12-month price target is about $404.29, reflecting continued positive sentiment.
• TSMC’s stock is trading near highs, opening at $444.56 and sitting close to its 52-week high of $450.16. The company also has a market cap of $2.31 trillion and reported strong recent financial results, including $3.11 EPS and $30.65 billion in quarterly revenue.
• The company raised its dividend to $1.1136 per share quarterly, up from $0.95 previously. That works out to a $4.45 annualized dividend yield of roughly 1.0%.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have been given a consensus recommendation of "Buy" by the fifteen brokerages that are presently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $404.2857.

TSM has been the subject of a number of recent research reports. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. DA Davidson reaffirmed a "buy" rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Finally, Needham & Company LLC upped their target price on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a report on Thursday, April 16th.

Taiwan Semiconductor Manufacturing Trading Up 1.8%

Shares of TSM stock opened at $444.56 on Friday. Taiwan Semiconductor Manufacturing has a 52-week low of $202.28 and a 52-week high of $450.16. The stock has a market cap of $2.31 trillion, a price-to-earnings ratio of 36.99, a P/E/G ratio of 1.27 and a beta of 1.38. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49. The firm has a fifty day moving average of $386.53 and a 200-day moving average of $347.24.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion during the quarter. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing will post 15.28 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. Stockholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is currently 25.04%.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: At its annual shareholders’ meeting, CEO C.C. Wei said TSMC expects strong growth over the next few years as AI demand for advanced semiconductors remains robust, and he suggested the company would like to raise chip prices to protect margins. Article Title
• Positive Sentiment: Multiple analyst and market commentary pieces highlighted TSMC as central to the AI supply chain, noting its leadership in advanced-node manufacturing and continued bullish price-target support from firms like Bernstein and BofA. Article Title
• Positive Sentiment: Shareholders approved TSMC’s 2025 results and charter changes at the June 4 meeting, reinforcing a stable corporate backdrop with no sign of governance disruption. Article Title
• Neutral Sentiment: Coverage comparing TSMC with Micron and reviewing its decade-long stock gains was generally supportive, but largely reiterated the long-term AI investment thesis rather than delivering a new catalyst. Article Title
• Neutral Sentiment: Media and market-watch items noted TSMC’s importance to the broader tech/AI trade and its appearance in futures and sector rotation coverage, which supports visibility but does not change fundamentals. Article Title
• Negative Sentiment: Investor concerns rose after Wei warned that AI chip shortages are not ending soon and that it will take a very long time to fully satisfy U.S. customer demand, implying supply constraints and possible execution challenges. Article Title
• Negative Sentiment: Reports emphasizing a years-long AI chip supply shortage and rising component costs may pressure sentiment in the near term, even if they underscore strong demand. Article Title

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, the vice president owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. This represents a 7.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien acquired 2,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were bought at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders bought 3,346 shares of company stock worth $218,005. 1.11% of the stock is owned by insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently added to or reduced their stakes in the stock. Quattro Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $25,000. Hilton Head Capital Partners LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $27,000. Stephens Consulting LLC grew its holdings in Taiwan Semiconductor Manufacturing by 82.0% during the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 41 shares during the last quarter. Strategic Advocates LLC grew its holdings in Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $29,000. Institutional investors own 16.51% of the company's stock.

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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