Taiwan Semiconductor Manufacturing (NYSE:TSM) Price Target Raised to $590.00 at Bank of America

Key Points

• Bank of America raised its price target on Taiwan Semiconductor Manufacturing from $490 to $590 and kept a buy rating, implying about 34.9% upside from the prior close.
• Other analysts remain largely bullish overall, with Taiwan Semiconductor Manufacturing holding an average Buy rating and a consensus price target of $449.38, though a few firms have recently mixed in upgrades and downgrades.
• The stock has been benefiting from strong AI-related demand and solid recent revenue growth, while insider and institutional activity has also been active, including both share purchases and a notable VP share sale.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) had its price objective upped by stock analysts at Bank of America from $490.00 to $590.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Bank of America's target price would suggest a potential upside of 34.87% from the stock's previous close.

TSM has been the topic of several other reports. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. DA Davidson reiterated a "buy" rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Weiss Ratings reissued a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, June 17th. Needham & Company LLC boosted their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Finally, Barclays upped their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and an average price target of $449.38.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM stock traded up $1.06 on Wednesday, hitting $437.45. 5,643,399 shares of the stock traded hands, compared to its average volume of 13,823,033. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. Taiwan Semiconductor Manufacturing has a 52 week low of $220.80 and a 52 week high of $476.79. The firm has a 50 day simple moving average of $410.35 and a two-hundred day simple moving average of $360.89. The firm has a market cap of $2.27 trillion, a price-to-earnings ratio of 36.37, a PEG ratio of 1.36 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share 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, equities research analysts predict that Taiwan Semiconductor Manufacturing will post 15.3 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on 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 owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Bor-Zen Tien acquired 2,000 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were purchased at an average price of $69.91 per share, for a total transaction of $139,820.00. Following 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. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 4,496 shares of company stock worth $327,927. 1.11% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently bought and sold shares of the business. Tiger Global Management LLC raised its holdings in Taiwan Semiconductor Manufacturing by 49.4% in 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 acquiring an additional 1,839,600 shares during the last quarter. Van ECK Associates Corp boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 11.1% during the 4th 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 acquired a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $495,163,000. T. Rowe Price Investment Management Inc. grew 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 valued at $636,077,000 after purchasing an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $360,443,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts and market commentary continue to point to TSMC as a core beneficiary of AI spending, especially through its CoWoS advanced packaging business, which remains central to HBM-driven chip demand. Why TSMC’s CoWoS Role Keeps Taiwan Semiconductor (TSM) Central to the HBM-Driven AI Chip Boom
• Positive Sentiment: Recent revenue trends were strong, with May revenue up 30.1% year over year and year-to-date revenue up 30.0%, reinforcing confidence that AI and advanced-node demand remains robust. Why TSMC’s CoWoS Role Keeps Taiwan Semiconductor (TSM) Central to the HBM-Driven AI Chip Boom
• Positive Sentiment: Vice President Lipen Yuan bought additional TSM shares, a modest but constructive insider signal that management may remain confident in the company’s outlook. Insider trade filing
• Positive Sentiment: Multiple articles highlight bullish price-target upgrades and long-term upside potential, with some commentary suggesting TSMC could approach the $500 level by year-end if AI demand stays strong. ASML’s Chip Dominance Runs Into New Silicon Boundaries (TSM)

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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