Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 7.9% Following Insider Buying Activity

Key Points

• TSMC shares jumped 7.9% to about $404.18 on heavier-than-average trading after vice presidents disclosed open-market purchases, providing a modest insider-confidence signal.
• Analyst sentiment remains strongly positive: the stock has a consensus “Buy” rating and an average price target of $496.25, with several firms recently raising their targets.
• TSMC reported $4.28 in quarterly EPS on $39.89 billion in revenue and increased its quarterly dividend to $1.1136 per share, equivalent to an annualized yield of roughly 1.1%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares rose 7.9% on Thursday following insider buying activity. The stock traded as high as $406.77 and last traded at $404.1750. 17,205,611 shares were traded during trading, an increase of 22% from the average session volume of 14,157,238 shares. The stock had previously closed at $374.67.

Specifically, VP Bor-Zen Tien purchased 1,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The shares were purchased at an average cost of $67.97 per share, with a total value of $67,970.00. Following the completion of the transaction, the vice president owned 5,000 shares of the company's stock, valued at approximately $339,850. This represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the purchase, the vice president owned 13,051 shares in the company, valued at approximately $967,470.63. This represents a 8.30% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin bought 1,000 shares of the stock in a transaction on Tuesday, July 21st. The shares were bought at an average price of $74.13 per share, with a total value of $74,130.00. Following the purchase, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analyst Ratings Changes

A number of analysts have recently issued reports on TSM shares. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday, July 16th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Needham & Company LLC lifted their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a "buy" rating in a research note on Monday. Finally, DA Davidson upped their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $496.25.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analyst H. Engel of Erste Group raised TSMC’s estimated EPS to $16.69 for fiscal 2026 from $15.82 and to $21.25 for fiscal 2027 from $20.58. The revisions are above the current-year consensus estimate of $16.34, reinforcing expectations for continued AI and high-performance-computing growth. Taiwan Semiconductor Manufacturing analyst estimates
• Positive Sentiment: TSMC was viewed more favorably than ASML in a comparison of AI-chip stocks because of its valuation, recent performance and stronger analyst sentiment. Both companies benefit from rising AI-chip demand, but the analysis favors TSM as the better buy. ASML vs. TSM: Which AI Chip Stock Is the Better Buy Now?
• Positive Sentiment: The broader AI-chip group rebounded, lifting TSMC along with Intel and AMD. The move reflects renewed demand for AI infrastructure following the sector’s recent selloff rather than a new company-specific announcement. AI-chip stocks rebound
• Positive Sentiment: Two TSMC vice presidents recently purchased shares in open-market transactions. The insider buying offers a modest confidence signal, though the purchases are small relative to TSMC’s market capitalization. TSMC insider buying
• Neutral Sentiment: Amkor’s 10-year agreement connected to a TSMC-backed advanced-packaging facility in Arizona highlights growing demand for localized AI-chip packaging and strengthens TSMC’s U.S. manufacturing ecosystem. Amkor lands 10-year TSMC Arizona deal
• Negative Sentiment: Samsung’s proposed agreement with Broadcom, reportedly valued at more than $200 billion across memory and foundry businesses, represents an effort to build an integrated alternative to TSMC’s AI-foundry dominance. Increased competition could pressure TSMC’s long-term market share and pricing power. Samsung and Broadcom AI foundry deal
• Negative Sentiment: Recent coverage continues to raise questions about TSMC’s access to China-related equipment and the sustainability of AI customer spending. Those concerns, together with the prior technology-sector selloff, remain risks to the stock despite record profits. TSMC faces questions over China tools and AI spending

Taiwan Semiconductor Manufacturing Stock Up 7.9%

The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The business has a 50-day simple moving average of $427.21 and a 200-day simple moving average of $383.56. The stock has a market cap of $2.10 trillion, a P/E ratio of 29.16, a PEG ratio of 0.91 and a beta of 1.36.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. Analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 EPS 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 of this dividend is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. 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 presently 25.32%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently bought and sold shares of TSM. Quattro Advisors LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $27,000. Strategic Advocates LLC lifted its holdings 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 worth $28,000 after buying an additional 36 shares during the last quarter. Ares Financial Consulting LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $29,000. Finally, Basepoint Wealth LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $31,000. 16.51% of the stock is currently owned by 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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