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

Key Points

• TSMC shares fell 1.8% on Tuesday, trading as low as $386.12 before last changing hands around $397.16, with volume running above average.
• Despite the pullback, recent commentary remains broadly bullish on the stock thanks to AI-driven demand and TSMC’s expanding advanced-node capacity, with analysts maintaining a consensus Buy rating and an average target price of $404.29.
• Investors are watching TSMC’s large Arizona expansion spending closely: the company approved up to $20 billion in additional funding for the site, supporting long-term growth but raising near-term capital spending concerns.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price fell 1.8% on Tuesday . The company traded as low as $386.12 and last traded at $397.1560. 18,071,577 shares changed hands during mid-day trading, an increase of 28% from the average session volume of 14,072,924 shares. The stock had previously closed at $404.54.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Market commentary says TSMC could be one of the smartest AI bets, with a bullish price target implying meaningful upside and reflecting confidence in sustained demand for its leading-edge chips. Article Title
• Positive Sentiment: Zacks highlighted TSMC’s strong year-to-date performance, driven by AI demand and advanced-node expansion, while noting the company remains a core growth name in semiconductors. Article Title
• Positive Sentiment: TSMC approved a large capital injection for its Arizona unit and also greenlit a major capacity expansion, signaling continued investment in U.S. manufacturing and future production growth. Article Title
• Positive Sentiment: TSMC’s CEO made a small insider purchase, which is a modest confidence signal from management and can be viewed favorably by investors. Article Title
• Neutral Sentiment: Several articles focused on investor interest and analyst coverage, including a consensus “Buy” rating, but these are more sentiment indicators than new fundamental catalysts. Article Title
• Neutral Sentiment: Some commentary warned that TSMC’s strong run has made the stock more valuation-sensitive, so upside may depend on AI demand staying very strong. Article Title
• Negative Sentiment: One report said TSMC shares slipped after the company approved up to $20 billion of additional funding for its Arizona site, raising near-term capital spending concerns even though the move supports long-term growth. Article Title

Wall Street Analysts Forecast Growth

A number of research firms have commented on TSM. Argus upgraded Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research report on Thursday, January 15th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. TD Cowen boosted their target price on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a "hold" rating in a research report on Friday, January 16th. Finally, Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Two 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 company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a 50-day simple moving average of $362.07 and a 200 day simple moving average of $331.93. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.51 and a quick ratio of 2.32. The company has a market capitalization of $2.06 trillion, a PE ratio of 33.04, a P/E/G ratio of 1.20 and a beta of 1.39.

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

Insider Activity

In related news, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Sunday, March 22nd. The shares were acquired at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the transaction, the vice president directly owned 9,051 shares of the company's stock, valued at $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders acquired 1,346 shares of company stock valued at $78,185 in the last quarter. 1.11% of the stock is owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently made changes to their positions in the stock. Fisher Asset Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company's stock valued at $5,514,662,000 after purchasing an additional 313,773 shares during the last quarter. Van ECK Associates Corp increased its stake in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Bank of America Corp DE increased its stake in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company's stock valued at $4,832,708,000 after purchasing an additional 966,926 shares during the last quarter. Massachusetts Financial Services Co. MA increased its stake in Taiwan Semiconductor Manufacturing by 3.6% in the third quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company's stock valued at $4,401,448,000 after purchasing an additional 541,047 shares during the last quarter. Finally, Jennison Associates LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company's stock valued at $4,070,393,000 after purchasing an additional 802,757 shares during the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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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