Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.1% Higher - Time to Buy?

Key Points

• TSM shares rose 1.1% on Wednesday, closing at $437.19 after trading as high as $440.49, though volume was below average.
• Analysts remain broadly bullish, with firms like Barclays, Needham, and Susquehanna raising price targets and citing continued strength in AI chip demand. The consensus rating is still Buy, with an average target price of $449.38.
• The company reported strong fundamentals, including 40.6% year-over-year revenue growth in its latest quarter, and also boosted its quarterly dividend to $1.1136 per share. Management and some investors appear confident, although a few reports flagged recent sector weakness and a more cautious stance from Goldman Sachs.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s share price was up 1.1% on Wednesday . The company traded as high as $440.49 and last traded at $437.19. 11,269,763 shares changed hands during trading, a decline of 19% from the average daily volume of 13,969,978 shares. The stock had previously closed at $432.57.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Citi reiterated that TSM is well-positioned to raise its 2026 revenue growth outlook and long-term targets, reinforcing the view that AI chip demand is still accelerating. Revenue and Growth Outlook Affirm Why Taiwan Semiconductor Manufacturing Co. (TSM) is a Top AI Stock on Wall Street’s Radar
• Positive Sentiment: Multiple articles say AI-driven semiconductor spending remains strong, and TSM continues to be viewed as a key beneficiary because it fabricates advanced chips used in AI infrastructure. AI Powering Semiconductor Sales: 4 Stocks to Boost Your Portfolio
• Positive Sentiment: Several market commentaries argue that the recent chip-stock weakness is mainly liquidity-driven, suggesting the sell-off may be temporary and unrelated to end-demand for TSM’s leading-edge capacity. The AI Chip Sell-Off Looks Scary, But the Real Story May Be Liquidity (TSM)
• Neutral Sentiment: TSM is still being compared favorably with other AI leaders as investors debate which stocks offer the best exposure to the long-running AI buildout. Alphabet Vs. Taiwan Semiconductor: What Is The Better Stock To Buy Right Now
• Negative Sentiment: TSM fell sharply in the prior session, with reports citing a broader market and sector downdraft rather than company-specific news. TSMC (TSM) Falls More Steeply Than Broader Market: What Investors Need to Know
• Negative Sentiment: Goldman Sachs reportedly turned more cautious on TSM, creating some concern that the recent rally may have already priced in much of the good news. Goldman Sachs turns its back on major semiconductor stock Taiwan Semiconductor Manufacturing

Analysts Set New Price Targets

Several research firms recently commented on TSM. 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 note on Wednesday, April 22nd. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, June 17th. Finally, Susquehanna lifted their price target on shares of Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the stock a "positive" rating in a research note on Monday, June 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $449.38.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The firm has a market cap of $2.27 trillion, a price-to-earnings ratio of 36.37, a PEG ratio of 1.14 and a beta of 1.36. The stock has a 50-day moving average price of $423.77 and a 200 day moving average price of $371.35.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Wednesday, April 15th. The semiconductor company reported $3.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.31 by $0.18. The business had revenue of $35.49 billion for the quarter, compared to analyst estimates of $35.47 billion. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company's revenue for the quarter was up 40.6% compared to the same quarter last year. During the same period last year, the firm posted $2.12 earnings per share. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 29.20%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The shares were purchased at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the purchase, the vice president directly owned 5,000 shares in the company, valued at $395,950. This represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares of the company's stock, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders acquired 5,496 shares of company stock valued at $404,567 in the last three months. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several large investors have recently bought and sold shares of TSM. Shannon River Fund Management LLC acquired a new position in Taiwan Semiconductor Manufacturing during the third quarter valued at approximately $2,430,000. Capital Research Global Investors grew its stake in Taiwan Semiconductor Manufacturing by 66.3% during the fourth quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock worth $976,821,000 after buying an additional 1,281,648 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $961,000. Meridian Wealth Management LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% in the 4th quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company's stock valued at $20,049,000 after acquiring an additional 14,406 shares during the period. Finally, Boyer Financial Services Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $648,000. Institutional investors and hedge funds 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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