Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.2% - Should You Sell?

Key Points

• TSMC slid about 1.2% to ~$366 mid‑day, but Q1 results showed an earnings beat (EPS $3.11) and a meaningful profit and margin jump driven by AI chip demand, supporting longer‑term revenue and margin upside.
• Analysts are broadly bullish—multiple upgrades from firms like Zacks, BofA and Goldman and a MarketBeat consensus Buy rating with an average price target of $401.43—implying notable upside from current levels.
• The company pays a quarterly dividend of $0.9503 (annual $3.80, ~1.0% yield), insiders recently added shares (VP bought 1,000), and institutional investors own roughly 16.5% of the stock.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded down 1.2% during mid-day trading on Monday . The company traded as low as $364.25 and last traded at $366.1990. 11,537,940 shares changed hands during trading, a decline of 11% from the average session volume of 12,937,206 shares. The stock had previously closed at $370.50.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Zacks upgraded TSMC to a Zacks Rank #2 (Buy), signaling growing optimism on near‑term earnings prospects which can lift buying interest. TSMC (TSM) Upgraded to Buy: Here's Why
• Positive Sentiment: BofA raised its price target and kept a Buy rating, citing a strong outlook and continued sales growth — institutional upgrades and higher PTs support upside and reinforce conviction among growth investors. BofA Raises TSMC Price Target on Strong Outlook, Keeps Buy Rating
• Positive Sentiment: Company results and reporting show a meaningful profit jump and margin expansion driven by AI chip demand — evidence TSMC is capturing strong AI infrastructure spend, which supports longer‑term revenue and margin upside. Profit jumped 58% at Taiwan Semi. Does that make TSM stock a buy here?
• Positive Sentiment: Multiple analyst notes and market writeups (Barchart, Seeking Alpha, Motley Fool) argue Q1 reinforces TSMC’s AI momentum and position as the leading advanced‑node manufacturer — narrative that supports premium valuation multiples. 3 Reasons TSMC Stock Is a 'Strong Buy' After Q1 Earnings
• Neutral Sentiment: Analysts and articles are debating whether to “buy the dip” after the post‑earnings move — useful tactical debates but not a change to the longer‑term bull case. Should You Buy Taiwan Semiconductor Stock on the Dip?
• Neutral Sentiment: Wider industry pieces highlight the AI supercycle and potential winners; these reinforce sector tailwinds but are indirect for TSMC’s short‑term moves. Two AI giants that could rival Apple's market cap by 2028
• Negative Sentiment: Despite strong fundamentals, the stock has seen intraday selling and commentary about short‑term sellers—Jim Cramer and others flagged profit‑taking after earnings, which can pressure the stock near term. Jim Cramer Didn’t Hold Back When Discussing Taiwan Semiconductor (TSM) Sellers

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research note on Friday, January 23rd. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, March 20th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Two research 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. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and a consensus price target of $401.43.

Taiwan Semiconductor Manufacturing Stock Down 1.2%

The stock has a market capitalization of $1.90 trillion, a P/E ratio of 30.47, a P/E/G ratio of 1.13 and a beta of 1.35. The company's 50-day moving average price is $354.78 and its 200 day moving average price is $322.20. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.32 and a current ratio of 2.51.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%.The firm had revenue of $30.65 billion during the quarter. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 14.62 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 24.71%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 1,000 shares of the firm's stock in a transaction that occurred on Sunday, March 22nd. The shares were bought at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the transaction, the vice president owned 9,051 shares of the company's stock, valued at approximately $506,222.43. This represents a 12.42% 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. Corporate insiders own 1.11% of the company's stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently bought and sold shares of the business. Quattro Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Hilton Head Capital Partners LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $27,000. Stephens Consulting LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 41 shares during the last quarter. Strategic Advocates LLC increased its position 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 acquiring an additional 36 shares during the period. Finally, Ares Financial Consulting LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $29,000. Institutional investors own 16.51% of the company's stock.

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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