Taiwan Semiconductor Manufacturing (NYSE:TSM) Sets New 12-Month High - Still a Buy?

Key Points

• Shares of Taiwan Semiconductor Manufacturing Company (TSM) hit a new 52-week high of $251.12, closing at $250.44 with over a million shares traded.
• Analysts have upgraded the stock, with a consensus rating of Buy and an average target price of $258.33, indicating strong confidence in the company's future performance.
• The company announced a dividend increase to $0.8348 per share, reflecting a boost from the previous dividend and suggesting a commitment to returning value to shareholders.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $251.12 and last traded at $250.44, with a volume of 1127307 shares trading hands. The stock had previously closed at $247.19.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on TSM shares. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Barclays reaffirmed an "overweight" rating and set a $240.00 price objective (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Needham & Company LLC reaffirmed a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Finally, Susquehanna raised their price objective 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. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and an average target price of $258.33.

Taiwan Semiconductor Manufacturing Trading Up 1.9%

The stock has a market capitalization of $1.31 trillion, a PE ratio of 28.66, a P/E/G ratio of 1.16 and a beta of 1.23. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20. The stock has a 50 day moving average price of $236.57 and a 200-day moving average price of $201.22.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Investors 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 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%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 55.6% during the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock valued at $2,872,814,000 after acquiring an additional 6,180,445 shares during the period. Bank of America Corp DE increased its holdings in shares of Taiwan Semiconductor Manufacturing by 0.8% in 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 purchasing an additional 115,158 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Taiwan Semiconductor Manufacturing by 19.1% in 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 purchasing an additional 1,984,835 shares during the last quarter. Jennison Associates LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 26.7% in the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock worth $2,728,478,000 after purchasing an additional 2,537,760 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 18.0% in the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock worth $2,368,587,000 after purchasing an additional 1,593,786 shares during the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.