Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.5% - Time to Buy?

Key Points

• TSMC shares rose 1.5% on Thursday amid stronger trading interest, with the stock benefiting from broader optimism around AI chip demand.
• Nvidia’s upbeat AI outlook and AMD’s use of TSMC’s 2nm process underscored continued demand for TSMC’s advanced manufacturing, reinforcing its central role in the AI supply chain.
• Analysts remain largely bullish, with several raising price targets and the company also boosting its quarterly dividend, though geopolitical and supply-chain risks still hang over the stock.

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) rose 1.5% on Thursday . The stock traded as high as $411.46 and last traded at $407.6760. Approximately 8,830,343 shares traded hands during mid-day trading, a decline of 37% from the average daily volume of 13,964,848 shares. The stock had previously closed at $401.62.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Nvidia’s upbeat AI demand outlook boosted sentiment across Asian chipmakers, reinforcing TSMC’s role as a major supplier to the AI buildout. Nvidia's AI Outlook Sends Asian Chipmakers Up 5.5%
• Positive Sentiment: AMD began ramping its next-generation EPYC “Venice” CPUs on TSMC’s 2nm process, a sign that TSMC’s advanced-node manufacturing remains in high demand. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: TSMC reportedly lifted its 2030 global semiconductor market forecast to over $1.5 trillion, pointing to a larger long-term market opportunity. Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) Raises 2030 Global Semiconductor Market Forecast to Over USD1.5 Trillion
• Neutral Sentiment: There is also stock-specific attention on TSMC after commentary around valuation, insider trading, and the company’s recent tech symposium, which may add to trading activity but does not change the core AI growth story. Taiwan Semiconductor stock coverage
• Negative Sentiment: Some headlines continue to flag geopolitical and supply-chain risks tied to Taiwan and the broader semiconductor sector, which can limit upside even amid strong fundamentals. Taiwan may limit currency switching for TSMC dollar dividends to once a year, sources say

Analyst Ratings Changes

Several analysts have recently weighed in on TSM shares. Needham & Company LLC lifted their target price on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a report on Thursday, April 16th. 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. Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Finally, DA Davidson restated a "buy" rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Trading Up 1.5%

The stock has a market cap of $2.11 trillion, a PE ratio of 33.92, a P/E/G ratio of 1.15 and a beta of 1.39. The business's fifty day moving average is $368.37 and its 200 day moving average is $337.04. The company has a quick ratio of 2.32, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. The ex-dividend date 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 yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 24.71%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the business's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Bor-Zen Tien purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares of the company's stock, valued at approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have acquired 3,346 shares of company stock worth $218,005. 1.11% of the stock is owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the business. Quattro Advisors LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at $27,000. Stephens Consulting LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 41 shares in the last quarter. Evolution Wealth Management Inc. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after buying an additional 67 shares during the period. Finally, Strategic Advocates LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $28,000 after buying an additional 36 shares during the period. Hedge funds and other institutional investors 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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