Taiwan Semiconductor Manufacturing (NYSE:TSM) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Taiwan Semiconductor Manufacturing's stock reached a new 52-week high, driven by Barclays raising its price target from $275.00 to $325.00, maintaining an overweight rating.
• Multiple analysts have upgraded their ratings for Taiwan Semiconductor, with a consensus rating of "Buy" and an average price target of $286.67 across four research firms.
• The company announced a quarterly dividend increase to $0.8348 per share, reflecting a boost from the previous quarterly dividend, and showing a dividend yield of 1.3%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday after Barclays raised their price target on the stock from $275.00 to $325.00. Barclays currently has an overweight rating on the stock. Taiwan Semiconductor Manufacturing traded as high as $265.62 and last traded at $263.83, with a volume of 194993 shares. The stock had previously closed at $261.38.

TSM has been the subject of a number of other research reports. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Susquehanna lifted their target price on Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Needham & Company LLC reiterated a "buy" rating and set a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Finally, Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Four equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of "Buy" and an average price target of $286.67.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 55.6% in the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock worth $2,872,814,000 after purchasing an additional 6,180,445 shares during the last quarter. Bank of America Corp DE increased its stake in Taiwan Semiconductor Manufacturing by 0.8% during the second quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock worth $3,353,348,000 after acquiring an additional 115,158 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in Taiwan Semiconductor Manufacturing by 19.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock worth $2,050,141,000 after acquiring an additional 1,984,835 shares during the last quarter. Jennison Associates LLC increased its stake in Taiwan Semiconductor Manufacturing by 26.7% during the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock worth $2,728,478,000 after acquiring an additional 2,537,760 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in Taiwan Semiconductor Manufacturing by 18.0% during the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock worth $2,368,587,000 after acquiring an additional 1,593,786 shares during the last quarter. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Stock Up 1.0%

The company has a 50 day simple moving average of $239.20 and a two-hundred day simple moving average of $203.68. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $1.37 trillion, a P/E ratio of 30.01, a PEG ratio of 1.23 and a beta of 1.23.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The company had revenue of $30.07 billion for the quarter, compared to analysts' expectations of $28.50 billion. During the same period in the previous year, the firm posted $1.48 earnings per share. The firm's revenue for the quarter was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be given a dividend of $0.8348 per share. This represents a $3.34 annualized dividend and a dividend yield of 1.3%. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date is Thursday, December 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 28.16%.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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