Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.8% - Should You Sell?

Key Points

• TSMC shares slipped 1.8% on Monday, trading as low as $398.19 before last changing hands near $404.07, modestly above average volume.
• Despite the dip, analysts remain broadly bullish: the stock carries a consensus “Buy” rating, with Barclays recently raising its target to $470 and several firms upgrading the name.
• Investor sentiment is supported by AI and long-term semiconductor growth themes, though some bearish commentary warns the stock could be vulnerable if crowded AI trade enthusiasm fades amid geopolitical and capital-spending risks.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price was down 1.8% during trading on Monday . The company traded as low as $398.19 and last traded at $404.0720. Approximately 14,594,813 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 14,027,349 shares. The stock had previously closed at $411.68.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Wall Street commentary says TSMC stands to benefit from the next phase of AI development, with deepening supply tightness giving the company more pricing power and leverage in advanced chip manufacturing. AI's Next Phase Plays Into TSMC's Hands
• Positive Sentiment: Analysts continue to view Taiwan Semiconductor as a buy, supporting the case that institutional sentiment remains favorable for the stock. Taiwan Semiconductor Manufacturing Company Ltd. Receives Consensus Recommendation of Buy from Analysts
• Positive Sentiment: Long-term investor pieces argue the semiconductor market could more than double by 2030, with TSMC positioned as one of the best ways to play that expansion. The semiconductor market could double to more than 1.5 trillion by 2030. Here's the best chip stock to buy
• Positive Sentiment: TSMC also received a small insider purchase from CEO Che-Chia Wei, which investors often read as a sign of confidence in the company’s outlook. CEO Che-Chia Wei insider transaction
• Neutral Sentiment: Broader market coverage says global investors are increasingly focusing on Asia for the next leg of equity gains, which can provide a supportive backdrop for TSMC without being company-specific. Asia emerges as primary target for global equity bulls seeking next growth leg
• Negative Sentiment: One bearish note warned that TSMC’s popularity as a crowded AI trade could make it vulnerable if investors decide to de-risk from semiconductor exposure, especially amid geopolitical and capital-spending concerns. TSMC Has Been The Market's No-Brainer Trade — And That Makes It Vulnerable

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on TSM shares. Freedom Capital raised Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research note on Thursday, January 15th. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Dbs Bank raised Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research note on Friday, January 23rd. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research note 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 investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a fifty day moving average of $361.06 and a 200-day moving average of $330.36. The firm has a market cap of $2.09 trillion, a P/E ratio of 33.62, a PEG ratio of 1.20 and a beta of 1.39. The company has a quick ratio of 2.32, a current ratio of 2.51 and a debt-to-equity ratio of 0.17.

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. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%. Research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be issued a $0.9503 dividend. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 0.9%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 24.96%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 1,000 shares of the firm's stock in a transaction that occurred on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the acquisition, the vice president directly owned 9,051 shares in the company, valued at approximately $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders bought a total of 1,346 shares of company stock valued at $78,185 in the last quarter. 1.11% of the stock is owned by company insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently added to or reduced their stakes in TSM. Brighton Jones LLC lifted its stake in Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock valued at $2,159,000 after buying an additional 1,892 shares during the period. Gamco Investors INC. ET AL acquired a new position in Taiwan Semiconductor Manufacturing in the second quarter valued at about $701,000. Bank of Nova Scotia lifted its stake in Taiwan Semiconductor Manufacturing by 12.8% in the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock valued at $3,556,000 after buying an additional 1,784 shares during the period. FWL Investment Management LLC lifted its stake in Taiwan Semiconductor Manufacturing by 26.5% in the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after buying an additional 53 shares during the period. Finally, Main Street Financial Solutions LLC acquired a new position in Taiwan Semiconductor Manufacturing in the second quarter valued at about $270,000. 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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