Taiwan Semiconductor Manufacturing (NYSE:TSM) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Taiwan Semiconductor Manufacturing (TSM) from a "buy" to a "hold" in a note issued to investors on Saturday.
• Despite that downgrade, the analyst consensus remains a "Buy" on average — four Strong Buy, nine Buy and two Hold ratings — with an average price target of $391.43.
• TSMC reported strong fundamentals (quarterly EPS $3.11, revenue $30.65B), has a market cap of about $1.75 trillion and now commands roughly 70% of the global foundry market, supporting its pricing power and margin resilience.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Other analysts have also issued reports about the company. Needham & Company LLC boosted their price target on Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a "buy" rating in a report on Thursday, January 15th. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. Sanford C. Bernstein reissued an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Argus raised Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research report on Thursday, January 15th. Finally, Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Four research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Up 0.4%

Shares of TSM stock opened at $338.22 on Friday. The firm has a fifty day moving average of $346.99 and a 200-day moving average of $305.52. The company has a quick ratio of 2.42, a current ratio of 2.62 and a debt-to-equity ratio of 0.17. Taiwan Semiconductor Manufacturing has a 12-month low of $134.25 and a 12-month high of $390.20. The company has a market capitalization of $1.75 trillion, a price-to-earnings ratio of 31.76, a P/E/G ratio of 0.92 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $3.11 EPS for the quarter. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. As a group, equities research analysts predict that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TSM. Brown Advisory Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 43.2% in the second quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company's stock valued at $1,506,389,000 after buying an additional 2,006,745 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Taiwan Semiconductor Manufacturing by 109.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company's stock worth $798,640,000 after acquiring an additional 1,842,951 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its position in Taiwan Semiconductor Manufacturing by 268.2% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company's stock worth $566,152,000 after acquiring an additional 1,820,852 shares in the last quarter. Van ECK Associates Corp lifted its stake in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock valued at $5,307,428,000 after acquiring an additional 1,750,824 shares during the last quarter. Finally, Life Cycle Investment Partners Ltd acquired a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at $495,163,000. 16.51% of the stock is owned by institutional investors and hedge funds.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Reuters/MSN reports TSMC now commands roughly 70% of the global foundry market — a reminder of its pricing power, scale advantages and strategic importance to chip customers, which supports revenue and margin resilience. Taiwan Semiconductor now commands 70% of global foundry market
• Positive Sentiment: SEC-filing coverage: TSMC has maintained a steady capital structure and disclosed new investments — signaling disciplined allocation of its large capex program and reducing investor concern about dilution or aggressive leverage. That supports confidence in execution of capacity buildouts. Taiwan Semiconductor Keeps Capital Structure Steady And Reveals New Investments
• Positive Sentiment: Valuation note: analysts and commentators are reassessing TSMC after a strong FY performance and a recent share pullback — the narrative that the stock may be more attractively priced after profit-taking is drawing buyer interest. Assessing Taiwan Semiconductor Manufacturing’s Valuation After A Strong Year And Recent Share Price Pullback
• Neutral Sentiment: TSMC released February 2026 revenue data — investors are parsing monthly trends for signs of AI-related capacity demand and seasonal recovery; the print is a short-term data point rather than a directional catalyst by itself. Taiwan Semiconductor Manufacturing (TSM) reports Feb 2026 revenue data
• Neutral Sentiment: Comparative analysis pieces (e.g., AMD vs. TSMC) are keeping investors focused on relative valuation and growth prospects across chip-related names; useful for positioning but not an immediate company-specific catalyst. AMD vs. TSMC: Which Chip Stock Actually Delivers the Smarter Return in 2026?
• Neutral Sentiment: Coverage noting large-manager portfolios and sector capex narratives (e.g., Steven Cohen holdings, AI capex winners) underscores institutional interest and the longer-term demand story for leading foundries, but these are background positives rather than immediate catalysts. Here Are Billionaire Steven Cohen's 5 Biggest Stock Holdings
• Negative Sentiment: Macro/geopolitical risk: broader coverage flags that foreign markets are reeling from the Iran conflict and energy shock — such risk-off episodes can pressure Asian equities and cyclical chip demand, creating downside risk to TSMC’s near-term multiples. Foreign Stocks Are Reeling From the Iran War. Buying the Dip Could Pay Off.

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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