Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1% After Analyst Upgrade

Key Points

• TSMC shares rose 1% after Zacks Research upgraded the stock from hold to strong-buy, with the shares trading as high as $409.89 during the session.
• Other analysts remain broadly positive on Taiwan Semiconductor Manufacturing, with several recent upgrades and price-target increases. MarketBeat’s consensus rating for the stock is Buy, with an average target price of $490.
• The company continues to benefit from strong AI-chip demand and is expanding its U.S. presence in Arizona, though investors are also watching for margin pressure from the large capital spending plan.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) were up 1% during trading on Monday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $409.89 and last traded at $402.4870. 11,608,679 shares were traded during trading, a decline of 17% from the average daily volume of 14,062,254 shares. The stock had previously closed at $398.37.

Other research analysts have also issued reports about the stock. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. DA Davidson raised their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Friday. Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, July 13th. Finally, Barclays upped their price target on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of "Buy" and an average target price of $490.00.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price of $79.19 per share, for a total transaction of $79,190.00. Following the acquisition, the vice president directly owned 5,000 shares of the company's stock, valued at approximately $395,950. The trade was a 25.00% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president directly owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have acquired 6,857 shares of company stock valued at $512,334. Corporate insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s latest earnings and guidance showed that AI-related demand remains very strong, with revenue growth, margins, and advanced-node capacity all trending higher. Taiwan Semiconductor: The Buildout Is Still Accelerating
• Positive Sentiment: Management said long-term AI chip demand is still “strong” and multi-year, while the company accelerates its Arizona expansion, which reinforces confidence in future demand and scale. TSMC expects 'strong, multi-year' demand for AI chips as it ramps up Arizona investment
• Positive Sentiment: Several recent analyst-style pieces argue TSM is a strong “buy on the dip” momentum play because AI demand, strong guidance, and leading-edge production expansion remain intact. Why Taiwan Semiconductor (TSM) is a Must-Buy Momentum Play on the Dip?
• Positive Sentiment: High-profile investor coverage from David Tepper and Stanley Druckenmiller put attention on semiconductor names tied to AI infrastructure, helping reinforce TSMC as a favored large-cap AI beneficiary. Billionaire Investor David Tepper's Top 5 Stocks
• Neutral Sentiment: Some commentary highlights that the broader semiconductor sector has been under pressure and even entered a bear market, suggesting TSM may still face volatility despite its strong fundamentals. Semiconductor stocks enter bear market: Is bubble burst next?
• Negative Sentiment: Investors are worried that TSMC’s much larger Arizona spending plan could pressure profit margins and execution, especially with labor and infrastructure constraints mentioned in recent reports. TSMC (TSM) Stock Slips as $100 Billion U.S. Expansion Adds Pressure to Profit Margins

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Quattro Advisors LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $25,000. Hilton Head Capital Partners LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at about $27,000. Stephens Consulting LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 41 shares in the last quarter. Strategic Advocates LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC purchased a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $29,000. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Stock Up 1.0%

The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The stock's 50-day simple moving average is $426.79 and its 200-day simple moving average is $378.48. The firm has a market capitalization of $2.09 trillion, a P/E ratio of 29.04, a P/E/G ratio of 0.95 and a beta of 1.36.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. The firm had revenue of $39.89 billion during the quarter. As a group, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.83 earnings per share 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 dividend of $1.1136 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 21.43%.

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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