Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 2.3% - Still a Buy?

Key Points

• TSMC shares rose 2.3% in mid-day trading, reaching as high as $449.39 on volume well above average, reflecting strong investor interest in the stock.
• Recent coverage remains largely bullish on TSMC’s AI-driven growth, with reports saying demand for advanced chips could stay tight through 2027 and that Nvidia is expanding its use of TSMC’s AI technologies.
• Analysts are still mostly positive, with a consensus Buy rating and several firms raising price targets, though some caution that the stock may be overvalued after its recent rally.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price rose 2.3% during mid-day trading on Tuesday . The company traded as high as $449.39 and last traded at $446.0920. Approximately 18,003,112 shares changed hands during trading, an increase of 45% from the average daily volume of 12,403,728 shares. The stock had previously closed at $436.0010.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC is being tied to the ongoing AI boom, with multiple reports noting that demand for advanced chips remains strong and could stay tight through 2027, supporting pricing power and future revenue. Article Title
• Positive Sentiment: News that Nvidia is expanding its use of TSMC’s AI technologies across chip production reinforces TSMC’s importance as a key manufacturing partner to the biggest AI chip designer. Article Title
• Positive Sentiment: Arm’s comment that it may hit its AI chip revenue goal early adds to the broader evidence that AI semiconductor demand is running hotter than expected, which is supportive for TSMC as a foundry supplier. Article Title
• Neutral Sentiment: Several articles highlight TSMC as one of the most-owned semiconductor names by hedge funds and a favorite in growth-stock screens, which reflects strong investor interest but does not by itself change fundamentals. Article Title
• Neutral Sentiment: One report noted TSMC’s ADR premium falling to a two-year low as Taipei-listed shares outpaced U.S. shares, suggesting some valuation rotation rather than a clear change in the company’s outlook. Article Title
• Negative Sentiment: A GuruFocus piece flagged TSMC as potentially overvalued after its recent rally, which could make some investors cautious even though the long-term AI backdrop remains constructive. Article Title

Analysts Set New Price Targets

TSM has been the topic of a number of recent research reports. Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Needham & Company LLC boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. DA Davidson reiterated a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Finally, Wedbush reiterated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Two investment 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 company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Trading Up 2.3%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49. The company's fifty day simple moving average is $380.19 and its 200-day simple moving average is $343.92. The company has a market capitalization of $2.31 trillion, a P/E ratio of 37.11, a PEG ratio of 1.22 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its 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 36.81%. The company had revenue of $30.65 billion for the quarter. Research 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 firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 25.04%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the 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 sale, the vice president directly owned 2,495,165 shares of the company's stock, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien purchased 2,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the transaction, the vice president owned 11,051 shares of the company's stock, valued at approximately $772,575.41. The trade was a 22.10% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have acquired 3,346 shares of company stock valued at $218,005. Insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently modified their holdings of TSM. Quattro Advisors LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $25,000. Hilton Head Capital Partners LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $27,000. Stephens Consulting LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 41 shares during the last quarter. Strategic Advocates LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $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 4th quarter worth approximately $29,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

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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