Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3.1% - Time to Sell?

Key Points

• TSMC shares fell 3.1% on Friday, trading as low as $398.83 before closing at $404.95, on lighter-than-usual volume.
• Despite the pullback, the company’s latest news remains broadly positive: Bank of America reiterated a Buy rating, and TSMC boosted its long-term semiconductor market forecast to $1.5 trillion by 2030 on AI and HPC demand.
• Investors are also watching a potential overhang from TSMC’s plan to sell up to 152 million shares of Vanguard International Semiconductor, along with some profit-taking after Cathie Wood’s ARK Invest reportedly sold TSMC near record highs.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) traded down 3.1% on Friday . The company traded as low as $398.83 and last traded at $404.9470. 11,740,988 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 14,087,590 shares. The stock had previously closed at $417.72.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Bank of America reiterated its Buy rating after TSMC’s technology symposium, saying recent concerns are overdone and highlighting continued confidence in the company’s outlook. Buy TSMC stock as ’recent concerns are overdone’: BofA
• Positive Sentiment: TSMC raised its long-term semiconductor market forecast to $1.5 trillion by 2030, driven by AI and high-performance computing demand, reinforcing a strong multi-year growth narrative. TSMC’s US$1.5t Chip Outlook Reshapes AI Supply Chain Risks And Rewards
• Positive Sentiment: Executives also said TSMC is accelerating investment in 2nm chips, CoWoS advanced packaging, and AI infrastructure, which supports future revenue growth from leading-edge AI demand. Taiwan Semi Accelerates 2nm And AI Packaging Push
• Neutral Sentiment: TSMC filed its Q1 2026 reviewed financials with the U.S. SEC, a routine disclosure with limited direct stock impact. TSMC Files Q1 2026 Reviewed Financials with U.S. SEC
• Negative Sentiment: TSMC announced plans to sell up to 152 million shares of Vanguard International Semiconductor in a block trade, reducing its stake and prompting investor focus on the divestiture. TSMC plans to sell 152 million shares in chipmaker Vanguard
• Negative Sentiment: Reports that Cathie Wood’s ARK Invest sold TSMC at or near record highs may be adding to short-term profit-taking pressure on the stock. Cathie Wood’s Semiconductor Trades: Bets on Cerebras Stock after Explosive IPO Debut, Sells TSMC at Record High

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Freedom Capital upgraded Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a report on Thursday, January 15th. TD Cowen increased their price objective on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a "hold" rating in a report on Friday, January 16th. Wedbush reiterated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Finally, Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.32 and a current ratio of 2.51. The stock has a fifty day simple moving average of $364.44 and a two-hundred day simple moving average of $334.32. The stock has a market capitalization of $2.10 trillion, a price-to-earnings ratio of 33.69, a P/E/G ratio of 1.17 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share 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. Analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing's payout ratio is currently 24.71%.

Insider Activity

In related news, VP Bor-Zen Tien acquired 1,000 shares of the business's stock in a transaction dated Sunday, March 22nd. The shares were bought at an average price of $55.93 per share, with a total value of $55,930.00. Following the transaction, the vice president directly owned 9,051 shares of the company's stock, valued at $506,222.43. This trade represents a 12.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last quarter, insiders have bought 1,346 shares of company stock worth $78,185. 1.11% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC bought a new position in Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $27,000. Stephens Consulting LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 82.0% during the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock worth $28,000 after buying an additional 41 shares in the last quarter. Strategic Advocates LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after buying an additional 36 shares in the last quarter. Finally, Ares Financial Consulting LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth 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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