Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 4.5% - Should You Buy?

Key Points

• TSMC shares rose 4.5% on the day, with trading volume running well above average as investors reacted positively to the latest semiconductor sector momentum.
• The company raised its long-term chip market outlook to more than $1.5 trillion by 2030 from $1 trillion, citing strong demand from AI and high-performance computing.
• Analysts remain constructive: several brokerages have recently raised price targets and reiterated buy ratings, while TSMC also boosted its quarterly dividend to $1.1136 per share.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shot up 4.5% during trading on Thursday . The stock traded as high as $421.97 and last traded at $417.7710. 18,492,628 shares changed hands during trading, an increase of 31% from the average session volume of 14,112,202 shares. The stock had previously closed at $399.80.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC raised its long-term outlook for the global semiconductor market to more than $1.5 trillion by 2030, up from a prior $1 trillion estimate, citing surging demand from AI and high-performance computing. TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth
• Positive Sentiment: The company also outlined aggressive capacity expansion, including new wafer fabs and advanced packaging projects across the U.S., Japan, Germany and other markets, signaling confidence in multi-year demand. TSMC’s US$1.5t Chip Outlook Reshapes AI Supply Chain Risks And Rewards
• Positive Sentiment: Sector momentum is helping, with emerging-market and semiconductor stocks rising alongside other AI names as optimism builds around trade ties and AI hardware demand. Emerging-Market Stocks Rise as Alibaba, TSMC Join AI Hot Streak
• Positive Sentiment: TSMC’s strong recent operating updates, including solid year-over-year revenue growth, support the view that AI and high-performance computing demand remains robust. TSMC jumps 4.4% as AI-chip demand narrative and a broader semiconductor rally lift the group

Analyst Ratings Changes

Several brokerages have recently commented on TSM. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. DA Davidson reaffirmed a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. TD Cowen raised their price objective on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a "hold" rating in a research report on Friday, January 16th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Finally, Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Trading Up 4.5%

The firm's 50-day moving average is $363.15 and its 200-day moving average is $333.46. The company has a current ratio of 2.51, a quick ratio of 2.32 and a debt-to-equity ratio of 0.17. The firm has a market cap of $2.16 trillion, a price-to-earnings ratio of 34.76, a P/E/G ratio of 1.16 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 38.17%. The business had revenue of $30.65 billion during the quarter. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is 24.96%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, March 22nd. The stock was acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the transaction, the vice president owned 9,051 shares in the company, valued at $506,222.43. This trade represents a 12.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have acquired 1,346 shares of company stock valued at $78,185. Company insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently bought and sold shares of the business. Quattro Advisors LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $27,000. Stephens Consulting LLC boosted its holdings in 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 acquiring an additional 41 shares during the last quarter. Evolution Wealth Management Inc. boosted its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after acquiring an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC boosted its holdings in 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 acquiring an additional 36 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Company Profile

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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