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

Key Points

• TSMC has a consensus “Buy” rating from 15 analysts, with 11 buy ratings and 2 strong-buy ratings. The average 12-month price target is about $404.29.
• Recent analyst updates were bullish, including Needham raising its price target to $480 and DA Davidson reiterating a $450 target. Other firms also upgraded or reaffirmed positive ratings on the stock.
• Fundamental and business news remain supportive: TSMC reported April revenue up 17.5% year over year, and it announced a joint venture with Sony Semiconductor Solutions in Japan to develop next-generation image sensors.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) has received a consensus recommendation of "Buy" from the fifteen analysts that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $404.2857.

A number of brokerages recently commented on TSM. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. DA Davidson reaffirmed a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Argus raised Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research note on Thursday, January 15th. Dbs Bank raised Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research note on Friday, January 23rd. Finally, Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th.

Insiders Place Their Bets

In other news, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the purchase, the vice president directly owned 9,051 shares of the company's stock, valued at $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.11% of the stock is owned by insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently added to or reduced their stakes in TSM. Quattro Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $25,000. Hilton Head Capital Partners LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $27,000. Stephens Consulting LLC increased its stake 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 purchasing an additional 41 shares in the last quarter. Evolution Wealth Management Inc. increased its stake in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC increased its stake 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 purchasing an additional 36 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company's stock.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported April revenue of NT$410.73 billion ($13.08 billion), up 17.5% year over year, signaling that AI chip demand is still supporting strong growth. TSMC Revenue Surges 17.5% in April — What It Means for Nvidia and Other AI Chip Stocks
• Positive Sentiment: TSMC and Sony Semiconductor Solutions said they plan to form a new joint venture in Japan to develop and manufacture next-generation image sensors, expanding TSMC’s exposure to another advanced semiconductor market. Sony, TSMC plan new Japan joint venture for next-generation image sensors
• Positive Sentiment: Investor commentary has remained constructive, with articles highlighting TSMC’s strong growth relative to its valuation and its position as a key “pick-and-shovel” beneficiary of the AI buildout. This Tech Stock Is the Quiet Monopoly Nobody on Wall Street Talks About
• Neutral Sentiment: Some coverage noted that monthly revenue growth may have dipped sequentially, but the broader trend remains solid and does not appear to be changing the long-term thesis. TSMC sees strong growth as AI demand holds up
• Negative Sentiment: There is also ongoing investor attention on potential foundry competition and customer diversification efforts, which could weigh on sentiment if rivals gain share over time. TSMC: Early Signs Of Formidable Foundry Competition

Taiwan Semiconductor Manufacturing Trading Down 0.2%

TSM opened at $411.05 on Monday. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.51 and a quick ratio of 2.32. The company has a market cap of $2.13 trillion, a price-to-earnings ratio of 34.20, a price-to-earnings-growth ratio of 1.20 and a beta of 1.39. The firm has a 50 day simple moving average of $361.06 and a 200 day simple moving average of $330.36. Taiwan Semiconductor Manufacturing has a fifty-two week low of $176.47 and a fifty-two week high of $420.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 38.17%. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing will post 15.25 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed 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 0.9%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 24.71%.

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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