Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded TSMC from “strong buy” to “buy,” although the broader analyst consensus remains “buy,” with a consensus price target of $496.25.
• TSMC shares opened at $419.94, versus a 12-month range of $223.70 to $479.00, while the company recently reported $4.28 in quarterly EPS and $39.89 billion in revenue.
• AI-driven demand continues to support TSMC’s outlook, with analysts citing higher growth expectations and major investors generally increasing their holdings; insiders also purchased shares during the past 90 days.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday.

TSM has been the topic of several other research reports. Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Bank of America increased their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Susquehanna raised their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a report on Thursday, July 16th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Finally, TD Cowen boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a "hold" rating in a research note on Friday, July 17th. Three 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 company. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $496.25.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM opened at $419.94 on Friday. Taiwan Semiconductor Manufacturing has a 12-month low of $223.70 and a 12-month high of $479.00. The stock has a market cap of $2.18 trillion, a P/E ratio of 30.30, a PEG ratio of 0.96 and a beta of 1.38. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.13. The company has a 50-day moving average of $427.01 and a two-hundred day moving average of $387.09.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings results 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 39.37%. The business had revenue of $39.89 billion for the quarter. As a group, research analysts predict that Taiwan Semiconductor Manufacturing will post 16.44 EPS for the current fiscal year.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin acquired 2,000 shares of the firm's stock in a transaction on Sunday, July 19th. The stock was purchased at an average price of $71.71 per share, with a total value of $143,420.00. Following the completion of the acquisition, the vice president directly owned 28,269 shares in the company, valued at $2,027,169.99. This trade represents a 7.61% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Lipen Yuan bought 1,000 shares of the stock in a transaction on Monday, June 22nd. The shares were acquired at an average price of $79.19 per share, with a total value of $79,190.00. Following the purchase, the vice president owned 5,000 shares of the company's stock, valued at $395,950. The trade was a 25.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 16,697 shares of company stock valued at $1,228,663. Company insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of large investors have recently modified their holdings of the company. Fisher Asset Management LLC raised its stake in Taiwan Semiconductor Manufacturing by 1.8% during the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company's stock valued at $5,514,662,000 after purchasing an additional 313,773 shares during the period. Van ECK Associates Corp boosted its position in Taiwan Semiconductor Manufacturing by 11.1% during the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares during the period. Bank of America Corp DE grew its stake in Taiwan Semiconductor Manufacturing by 6.5% during the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company's stock valued at $4,832,708,000 after acquiring an additional 966,926 shares in the last quarter. Jennison Associates LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 6.4% in the 4th quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company's stock valued at $4,070,393,000 after purchasing an additional 802,757 shares during the period. Finally, Coatue Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 6.9% in the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company's stock valued at $2,622,426,000 after purchasing an additional 556,988 shares during the period. Institutional investors and hedge funds own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC raised its 2026 outlook as AI-related demand accelerated, reinforcing expectations for stronger revenue and earnings growth. Taiwan Semiconductor Manufacturing Company Raised Its 2026 Outlook as AI Demand Accelerated
• Positive Sentiment: A roughly $64 billion capital-spending plan signals that TSMC expects sustained demand for leading-edge chips; reports that capacity remains insufficient could support pricing power and long-term growth. TSMC’s $64 Billion Investment Signals Mega-Growth
• Positive Sentiment: Investment commentary describes TSMC as a critical bottleneck in the AI-chip supply chain, highlighting its strategic importance to chip designers and cloud companies. Could Taiwan Semiconductor Manufacturing Be the Most Critical Bottleneck in the AI Chip Boom?
• Positive Sentiment: Industry reports continue to point to semiconductor-sales growth driven by AI optimism, placing TSM among the companies positioned to benefit from the trend. Semiconductor Sales Continue to Grow on AI Optimism
• Positive Sentiment: ARK Invest founder Cathie Wood reportedly invested $28.7 million in TSMC, providing a notable vote of confidence from a high-profile technology investor. Cathie Wood Invests in TSMC
• Positive Sentiment: Recent analysis argues that TSMC’s latest results and scale leave Intel facing a widening competitive gap, easing concerns about near-term foundry competition. How Will Intel Really Be Able to Beat TSMC in the Next Year?
• Neutral Sentiment: First Eagle Investment Management trimmed 156,540 TSMC shares, indicating that at least one institutional investor is taking profits or rebalancing, though the transaction does not establish a broader selling trend. First Eagle Trims Shares of TSMC
• Neutral Sentiment: Broader market enthusiasm and heavy ETF inflows are supporting semiconductor valuations, but the same flows could increase volatility if investor sentiment reverses. ETF Inflows and Market Risk

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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