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

Key Points

• Analyst consensus "Buy": Fifteen brokerages rate TSMC on average as a "Buy" (3 strong buy, 10 buy, 2 hold) with a one‑year price target of about $391.43.
• Strong Q1 results and growth tailwinds, but rising risks: TSMC has a $1.95 trillion market cap, reported Q1 EPS of $3.11 on $30.65 billion revenue with ~45% net margin and ~35% AI‑driven revenue growth, yet faces >30% capex increases for overseas fabs, geopolitical/supply risks and valuation‑sensitive volatility.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) has earned an average recommendation of "Buy" from the fifteen brokerages that are presently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $391.4286.

A number of research analysts have recently issued reports on TSM shares. The Goldman Sachs Group restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Dbs Bank raised shares of Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research report on Friday, January 23rd. Finally, Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th.

Taiwan Semiconductor Manufacturing Trading Down 1.0%

Shares of TSM stock opened at $375.97 on Thursday. Taiwan Semiconductor Manufacturing has a 1-year low of $145.84 and a 1-year high of $390.20. The company has a current ratio of 2.62, a quick ratio of 2.42 and a debt-to-equity ratio of 0.17. The stock has a market cap of $1.95 trillion, a price-to-earnings ratio of 35.30, a PEG ratio of 1.16 and a beta of 1.35. The stock has a 50-day moving average of $353.69 and a 200-day moving average of $320.70.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be paid a dividend of $0.9503 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 27.89%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record AI-driven sales: TSMC has reported a surge in revenue (mid‑30s % YoY) and the market is pricing strong demand for AI/datacenter chips, supporting expectations for an earnings beat. TSMC stock in focus as Q1 earnings loom after 35% revenue growth
• Positive Sentiment: Industry momentum: ASML raised its outlook after supply struggled to keep up — a signal that demand for advanced tools (and thus TSMC capacity) remains elevated, which validates TSMC’s growth runway. Struggling to keep pace with demand, ASML raises outlook
• Positive Sentiment: New ETF exposure could boost flows: GraniteShares launched YieldBOOST ETFs including a TSM-linked product, which can channel incremental retail/ETF flows into TSMC-related exposure. GraniteShares Bets On AI And Semiconductor Trade With New Income ETFs On Micron, TSMC, CoreWeave
• Positive Sentiment: Insider buying: CEO Che‑Chia Wei made a small open‑market purchase — a modest governance signal that can be read positively by investors. SEC Form 4 disclosure
• Neutral Sentiment: High expectations baked in: Multiple previews and analyst notes expect a beat, which raises the bar and increases the odds of post‑earnings volatility regardless of a print. Rising AI Infrastructure Spending Likely to Boost TSM's Q1 Revenues
• Neutral Sentiment: ETF and market positioning may amplify moves: Expectations-driven flows into AI/chip ETFs can magnify both rallies and selloffs around earnings. ETFs to Play Taiwan Semiconductor's Upbeat Results on AI Boom
• Negative Sentiment: Rising capex and overseas fab costs: Reports highlight a roughly 30%+ spending surge as TSMC expands fabs abroad (US, Japan), which could pressure margins despite top‑line growth. 32% TSMC Spending Surge: Massive AI Wave Heading Straight For ASML
• Negative Sentiment: Geopolitical & supply risks: Middle East tensions and “zero‑availability” tool/fuel risks are flagged as potential short‑term disruptors that could spook markets. TSMC Q1: Middle East War Consequences And The Zero-Availability Crisis
• Negative Sentiment: Valuation & volatility risk: TSMC trades near highs with stretched multiples; any guidance that’s cautious on 2H capex or demand could trigger a sharp pullback. TSMC Earnings Are Coming. Can It Keep Up With Chip Demand?

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the company's stock in a transaction on Sunday, March 22nd. The shares were purchased at an average cost of $55.93 per share, with a total value of $55,930.00. Following the completion of the purchase, the vice president owned 9,051 shares in the company, valued at $506,222.43. This represents a 12.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

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

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.

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