Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.4% - What's Next?

Key Points

• Taiwan Semiconductor Manufacturing Company's stock fell 2.4% during mid-day trading, reaching a low of $235.95 with a significantly reduced trading volume of 3.6 million shares.
• Analysts have maintained a generally positive outlook, with multiple firms upgrading price targets, including Susquehanna increasing theirs from $255.00 to $265.00 and Needham & Company setting a target of $270.00.
• The company reported a strong quarterly earnings performance, with an EPS of $2.47, exceeding expectations, and a revenue of $30.07 billion, reflecting a 44.4% year-over-year growth.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price fell 2.4% during mid-day trading on Tuesday . The stock traded as low as $235.95 and last traded at $235.61. 3,613,220 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 14,975,679 shares. The stock had previously closed at $241.41.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on TSM shares. Susquehanna raised their price objective on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a report on Monday, July 14th. Citigroup reissued a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Barclays reaffirmed an "overweight" rating and issued a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, June 3rd. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and an average price target of $258.33.

Taiwan Semiconductor Manufacturing Stock Down 2.6%

The company has a market capitalization of $1.22 trillion, a price-to-earnings ratio of 26.81, a price-to-earnings-growth ratio of 1.16 and a beta of 1.19. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.18. The firm's 50 day moving average price is $231.17 and its two-hundred day moving average price is $198.02.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping analysts' consensus estimates of $2.13 by $0.34. The company had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 32.87%. The firm's quarterly revenue was up 44.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently made changes to their positions in TSM. Goldman Sachs Group Inc. increased 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 worth $2,872,814,000 after buying an additional 6,180,445 shares during the last quarter. Bank of America Corp DE increased its stake 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 in the last quarter. Price T Rowe Associates Inc. MD increased its stake 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 in the last quarter. Jennison Associates LLC increased its stake 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 in the last quarter. Finally, Alliancebernstein L.P. boosted its position 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 valued at $2,368,587,000 after acquiring an additional 1,593,786 shares during the period. Hedge funds and other institutional investors own 16.51% of the company's stock.

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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