Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2% - Here's What Happened

Key Points

• TSMC shares fell 2% on Wednesday, trading as low as $434.53 before ending near $437.65, with volume running below the recent average.
• Despite the pullback, analysts remain highly bullish on the stock, citing strong AI demand and TSMC’s leadership in advanced chip manufacturing. Recent firms raised price targets, and the consensus rating remains a Buy.
• TSMC also boosted its quarterly dividend to $1.1136 per share from $0.95, while the company continues to show strong fundamentals, including solid profitability and a low debt-to-equity ratio.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price dropped 2% during trading on Wednesday . The stock traded as low as $434.53 and last traded at $437.6530. Approximately 10,085,048 shares traded hands during trading, a decline of 27% from the average daily volume of 13,770,723 shares. The stock had previously closed at $446.69.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Bernstein and BofA remained bullish on TSMC, with Bernstein raising its price target to $430 and keeping an Outperform rating, citing AI demand and leadership in advanced chip nodes. Bernstein and BofA Remain Bullish on TSMC (TSM) Amid AI and Advanced Node Leadership
• Positive Sentiment: Another bullish note said TSMC remains central to the AI buildout because every major AI company needs its chips, and the article pointed to a consensus Buy rating and higher target near $500. The One Company Every AI Giant Cannot Build Without Just Raised Its Outlook
• Positive Sentiment: AI enthusiasm also spilled into Taiwan markets, with reports that chip and photonics stocks jumped as Nvidia CEO Jensen Huang highlighted optical connectivity as a key bottleneck in next-gen AI infrastructure. Fresh AI Buzz Powers Taiwan Stocks Even Higher
• Neutral Sentiment: Several roundup-style articles mentioned TSMC as a widely owned, high-conviction semiconductor holding and a stock near buy zones, but these were more descriptive than newly material. Taiwan Semiconductor (TSM): One of the Most Owned Stocks by Hedge Funds?
• Neutral Sentiment: Earlier coverage noted TSMC outperformed the broader market in the latest session, reinforcing positive momentum rather than pointing to a new catalyst. TSMC (TSM) Beats Stock Market Upswing: What Investors Need to Know

Wall Street Analyst Weigh In

TSM has been the topic of several analyst reports. Needham & Company LLC upped their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. Wedbush reiterated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. DA Davidson reiterated a "buy" rating and set a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Finally, Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market capitalization of $2.27 trillion, a PE ratio of 36.41, a PEG ratio of 1.27 and a beta of 1.38. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The firm's 50-day simple moving average is $380.19 and its 200-day simple moving average is $343.92.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The company had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 24.71%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 2,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average price of $69.91 per share, with a total value of $139,820.00. Following the transaction, the vice president owned 11,051 shares of the company's stock, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the sale, the vice president directly owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders bought a total of 3,346 shares of company stock valued at $218,005 in the last ninety days. Corporate insiders own 1.11% of the company's stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently modified their holdings of the business. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $27,000. Stephens Consulting LLC lifted its position in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 41 shares during the last quarter. Evolution Wealth Management Inc. lifted its position in Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after acquiring an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC lifted its position in Taiwan Semiconductor Manufacturing by 62.1% during the fourth 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 last quarter. Hedge funds and other 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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