Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 7.1% - Should You Buy?

Key Points

• TSMC shares jumped 7.1% on Thursday, trading well above their prior close as volume surged to nearly 25.7 million shares, far above the average session volume.
• The company got a boost from several bullish catalysts, including a 10-year advanced packaging deal with Amkor in Arizona, growing AI/foundry optimism, and insider buying by a TSMC vice president.
• Analysts remain constructive on the stock, with multiple firms raising price targets and most ratings sitting at Buy or Strong Buy; TSMC also recently increased its quarterly dividend to $1.1136 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares shot up 7.1% during trading on Thursday . The stock traded as high as $465.22 and last traded at $462.8020. Approximately 25,727,913 shares traded hands during mid-day trading, an increase of 86% from the average session volume of 13,834,016 shares. The stock had previously closed at $432.15.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC signed a 10-year advanced packaging deal with Amkor in Arizona, strengthening its U.S.-based supply chain and supporting long-term advanced chip demand. Taiwan Semiconductor Manufacturing NYSE: TSM And Amkor Sign 10 Year Arizona Packaging Deal
• Positive Sentiment: Several articles framed TSMC as a top momentum and AI stock pick, reinforcing bullish investor sentiment around its growth runway and leadership in cutting-edge foundry services. Here's Why TSMC (TSM) is a Great Momentum Stock to Buy
• Positive Sentiment: A TSMC vice president bought 1,000 shares, which investors may view as a sign of internal confidence in the company’s outlook. Taiwan Semiconductor Manufacturing NYSE: TSM VP Lipen Yuan Buys 1,000 Shares
• Neutral Sentiment: Market commentary continued to highlight TSMC as a major AI beneficiary and a core semiconductor holding, but these pieces were mostly opinion-driven rather than new catalysts. Taiwan Semiconductor knocked down to No. 7 globally after SpaceX's record-breaking IPO
• Neutral Sentiment: Reports that Alphabet may split next-gen AI processor manufacturing between Samsung and TSMC suggest demand remains strong, though competition for future foundry business may increase. Alphabet (GOOGL) In Talks With Samsung For Manufacturing Next-Gen AI Processors
• Negative Sentiment: News that Intel and Apple are moving toward domestic chip production raised some investor concern that Apple could diversify more away from TSMC over time. Trump says Apple to partner with Intel on US chip design, production

Analysts Set New Price Targets

A number of research analysts have weighed in on TSM shares. Barclays increased their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. DA Davidson reissued a "buy" rating and issued a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Finally, Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Trading Up 7.1%

The stock has a fifty day moving average of $402.64 and a 200 day moving average of $356.22. The company has a market capitalization of $2.40 trillion, a P/E ratio of 38.50, a PEG ratio of 1.24 and a beta of 1.38. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is presently 25.12%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 2,000 shares of the company's 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 completion of the transaction, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the company's stock in a transaction on Monday, June 15th. The stock was purchased at an average price of $75.26 per share, with a total value of $75,260.00. Following the completion of the transaction, the vice president owned 4,000 shares of the company's stock, valued at approximately $301,040. This trade represents a 33.33% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders purchased 4,496 shares of company stock worth $304,667. 1.11% of the stock is owned by company insiders.

Institutional Inflows and Outflows

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

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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