Taiwan Semiconductor Manufacturing (NYSE:TSM) Hits New 52-Week High - Time to Buy?

Key Points

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Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $428.38 and last traded at $429.0380, with a volume of 2752919 shares trading hands. The stock had previously closed at $412.32.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is expected to raise prices on AI-related chips as demand remains very strong, which could support revenue and margins. TSMC, IBD Stock Of The Day, Flirts With Buy Point As Chip Giant Will Raise Prices Amid AI Demand
• Positive Sentiment: Nvidia’s plan to invest heavily in Taiwan and open a new headquarters reinforces Taiwan’s importance in the AI supply chain and highlights TSMC’s strategic position. Why Is TSMC Stock Rising In Premarket Today?
• Positive Sentiment: Rallying semiconductor peers such as Micron, Marvell, KLA, Lam Research, and Applied Materials suggest investors remain bullish on the broader AI chip cycle, which often lifts TSMC as the leading foundry. Why Is Marvell Technology (MRVL) Stock Rocketing Higher Today
• Positive Sentiment: TSMC’s latest dividend increase and upbeat commentary on its AI growth story may be adding to investor confidence in the stock’s cash generation and long-term outlook. What Investors Need to Know About TSMC's Hefty 17% Dividend Increase
• Neutral Sentiment: Reports that TSMC continues to adjust portfolio and dividend-related filings appear routine and are unlikely to materially change the investment thesis. TSMC Reports April Portfolio Shift Toward Fixed-Income, Leaves Capital Structure Unchanged
• Negative Sentiment: Huawei’s claimed chipmaking breakthrough and plans to narrow the technology gap with TSMC remain a competitive overhang, though the threat is still longer term. Huawei Targets 1.4nm Chips by 2031 Amid China AI Push

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Needham & Company LLC raised their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Zacks Research downgraded 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 research report on Wednesday, February 11th. Finally, DA Davidson reiterated a "buy" rating and issued a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.17 trillion, a P/E ratio of 34.84, a PEG ratio of 1.18 and a beta of 1.39. The business's 50 day simple moving average is $373.43 and its 200 day simple moving average is $340.12.

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 36.81%. Sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders 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 yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 24.96%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 2,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were 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 directly owned 11,051 shares of the company's stock, valued at approximately $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president directly owned 2,495,165 shares of the company's stock, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have acquired 3,346 shares of company stock worth $218,005. Insiders own 1.11% of the company's stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the stock. Tiger Global Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares during the last quarter. Van ECK Associates Corp increased its holdings in shares of 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 worth $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. lifted its position in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock worth $636,077,000 after buying an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP bought a new position in Taiwan Semiconductor Manufacturing during the third quarter valued at approximately $360,443,000. 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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