Taiwan Semiconductor Manufacturing (NYSE:TSM) Reaches New 1-Year High - Still a Buy?

Key Points

• TSMC shares hit a new 52-week high, trading as high as $421.97 and closing near $417.94, helped by strong investor interest in semiconductor and AI-related names.
• The company raised its 2030 global semiconductor market forecast to more than $1.5 trillion, citing faster-than-expected demand from AI and high-performance computing, and said it is expanding capacity with new wafer fab and advanced packaging projects.
• Analysts remain broadly positive, with multiple firms issuing Buy or Strong Buy ratings and TSMC also increasing its quarterly dividend by 17.2%, reinforcing confidence in its growth and cash generation.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $421.97 and last traded at $417.9380, with a volume of 6911764 shares trading hands. The stock had previously closed at $399.80.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC raised its 2030 global semiconductor market forecast to more than $1.5 trillion, highlighting stronger-than-expected demand from AI and high-performance computing. TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth
• Positive Sentiment: The company said it is accelerating capacity expansion, including nine new wafer fab and advanced packaging phases across multiple countries, which supports expectations for longer-term revenue growth. TSMC raises global chip market forecast to $1.5 trillion as AI demand surges
• Positive Sentiment: The stock is also benefiting from a broader rally in semiconductor and AI infrastructure names, as investors rotate into key “picks-and-shovels” suppliers tied to the AI build-out. TSMC jumps 4.4% as AI-chip demand narrative and a broader semiconductor rally lift the group
• Positive Sentiment: Reports also emphasized TSMC’s central role in the AI supply chain, reinforcing its strategic importance to major tech companies and cloud builders. Just How Important Is Taiwan? About $30 Trillion Important.
• Positive Sentiment: TSMC announced a 17.2% increase in its quarterly dividend, which can appeal to income-focused investors and signals confidence in cash generation. TSMC’s US$1.5t Chip Outlook Reshapes AI Supply Chain Risks And Rewards

Analyst Upgrades and Downgrades

A number of analysts have weighed in on TSM shares. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. DA Davidson reissued a "buy" rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Dbs Bank raised shares of Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a report on Friday, January 23rd. Argus raised shares of Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a report on Thursday, January 15th. Finally, Freedom Capital raised shares of Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a report on Thursday, January 15th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 4.4%

The stock's 50-day moving average is $363.15 and its 200-day moving average is $333.46. The stock has a market cap of $2.16 trillion, a P/E ratio of 34.72, a price-to-earnings-growth ratio of 1.16 and a beta of 1.39. The company has a current ratio of 2.51, a quick ratio of 2.32 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data 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 38.17%. The company had revenue of $30.65 billion during the quarter. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing's payout ratio is 24.96%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Sunday, March 22nd. The stock was bought at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the transaction, the vice president owned 9,051 shares in the company, valued at approximately $506,222.43. This trade represents a 12.42% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last three months, insiders have bought 1,346 shares of company stock worth $78,185. Company insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently bought and sold shares of the company. Quattro Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $27,000. Stephens Consulting LLC grew 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 valued at $28,000 after acquiring an additional 41 shares in the last quarter. Strategic Advocates LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 36 shares during the period. Finally, Ares Financial Consulting LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth approximately $29,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

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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