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

Key Points

• TSMC has a consensus analyst rating of “Buy” from 16 brokerages, with 12 buys and 2 strong buys; the average 1-year price target is about $449.38.
• Several analysts recently raised their price targets on the stock, including Susquehanna to $575 and Barclays to $470, while Needham lifted its target to $480.
• The company also highlighted a 10-year partnership with Amkor Technology in Arizona to expand advanced packaging and testing, reinforcing TSMC’s U.S. manufacturing presence and AI chip capacity.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) have received a consensus recommendation of "Buy" from the sixteen brokerages that are covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a hold rating, twelve have issued a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $449.3750.

A number of equities research analysts have recently weighed in on TSM shares. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the stock a "positive" rating in a research note on Monday, June 22nd. Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Needham & Company LLC raised their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd.

Insider Buying and Selling

In related news, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, May 19th. The shares were 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. This trade represents a 7.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Bor-Zen Tien purchased 2,000 shares of the company's stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the transaction, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 4,496 shares of company stock worth $327,927 in the last quarter. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TSM. Shannon River Fund Management LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the third quarter worth $2,430,000. Capital Research Global Investors grew its holdings in Taiwan Semiconductor Manufacturing by 66.3% during the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock worth $976,821,000 after acquiring an additional 1,281,648 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth $961,000. Meridian Wealth Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 27.9% during the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company's stock worth $20,049,000 after buying an additional 14,406 shares during the last quarter. Finally, Boyer Financial Services Inc. bought a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $648,000. Institutional investors own 16.51% of the company's stock.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC announced a 10-year partnership with Amkor Technology to expand advanced semiconductor packaging and testing capacity in Arizona, strengthening its U.S. manufacturing footprint and supporting demand for AI and high-performance computing chips. Taiwan Semiconductor Manufacturing NYSE: TSM Teams With Amkor In Arizona For AI Chip Packaging
• Positive Sentiment: Another article highlighted TSMC as a key beneficiary of the global AI chip build-out, reinforcing the view that it remains a core supplier to the biggest growth trend in semiconductors. Will Amazon, Taiwan Semiconductor, SpaceX, or Broadcom Be the Next $3 Trillion Company?
• Neutral Sentiment: Zacks noted that TSMC has been drawing increased investor attention, but the piece did not include a new earnings update or fresh operational catalyst. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: A broader market article said emerging markets are lagging in the AI race, which is more of an industry backdrop than a direct driver for TSMC. China, India See Top Firms Lose Market Cap Share in AI Lag
• Negative Sentiment: Bloomberg reported a raid on Super Micro Computer’s Taiwan offices in a chip-smuggling probe tied to Nvidia chips, which could increase scrutiny across the Taiwan semiconductor supply chain even though TSMC was not named. Super Micro Office Raided as Taiwan Expands Chip Smuggling Probe

Taiwan Semiconductor Manufacturing Stock Up 5.3%

Shares of Taiwan Semiconductor Manufacturing stock opened at $455.26 on Tuesday. The stock has a 50-day moving average price of $415.79 and a 200 day moving average price of $364.90. The company has a market cap of $2.36 trillion, a P/E ratio of 37.88, a P/E/G ratio of 1.09 and a beta of 1.39. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. Taiwan Semiconductor Manufacturing has a 1 year low of $221.18 and a 1 year high of $476.79.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results 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. As a group, analysts expect that Taiwan Semiconductor Manufacturing will post 15.35 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis 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 dividend payout ratio (DPR) is 25.12%.

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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