Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% - Should You Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company's shares rose by 2.8%, reaching a last traded price of $233.78, despite trading volume being significantly lower than average.
• Analysts have increased price targets for the stock, with Barclays setting a target of $240 and Susquehanna raising theirs to $265, reflecting a generally bullish sentiment.
• The company reported a strong quarterly performance with $30.07 billion in revenue and an EPS of $2.47, surpassing analysts' expectations.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shot up 2.8% on Friday . The stock traded as high as $233.79 and last traded at $233.78. 4,147,742 shares traded hands during trading, a decline of 72% from the average session volume of 14,947,888 shares. The stock had previously closed at $227.33.

Analysts Set New Price Targets

Several research firms have recently weighed in on TSM. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, May 22nd. Barclays reissued an "overweight" rating and set a $240.00 price target (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Susquehanna increased their price target 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. Finally, Needham & Company LLC reissued a "buy" rating and set a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $258.33.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a 50 day moving average price of $232.12 and a two-hundred day moving average price of $198.66. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The company has a market cap of $1.21 trillion, a P/E ratio of 26.59, a price-to-earnings-growth ratio of 1.09 and a beta of 1.19.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The firm had revenue of $30.07 billion for the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the company earned $1.48 EPS. The company's revenue was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the stock. Thompson Davis & CO. Inc. bought a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth $250,000. Forefront Wealth Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $267,000. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $5,167,000. Newbridge Financial Services Group Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 326.9% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 4,769 shares of the semiconductor company's stock valued at $1,080,000 after purchasing an additional 3,652 shares in the last quarter. Finally, Cape Investment Advisory Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 3.5% in the 2nd quarter. Cape Investment Advisory Inc. now owns 10,657 shares of the semiconductor company's stock valued at $2,414,000 after purchasing an additional 365 shares in the last quarter. 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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