Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.8% Higher - Here's What Happened

Key Points

• TSMC shares rose 1.8% on Thursday, trading as high as $448.01 before finishing near $444.56, with volume below the session average.
• Investor sentiment remains upbeat as AI demand stays strong; TSMC’s CEO said growth should remain robust for years, and analysts continue to highlight the company’s leadership in advanced chips and AI earnings potential.
• There are still some risks, including ongoing AI chip supply shortages, higher component costs, and the long ramp-up of U.S. manufacturing capacity, which could pressure margins or limit how quickly demand turns into revenue.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price traded up 1.8% during mid-day trading on Thursday . The company traded as high as $448.01 and last traded at $444.5630. 10,801,274 shares changed hands during trading, a decline of 21% from the average session volume of 13,745,166 shares. The stock had previously closed at $436.69.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s CEO said AI demand remains strong and the company expects robust growth over the next few years, reinforcing its position as a key supplier to Nvidia, Apple, and other AI leaders. Reuters article
• Positive Sentiment: Analyst coverage and recent commentary remain bullish, with firms like Bernstein and BofA reiterating confidence in TSMC’s advanced-node leadership and AI-driven earnings potential. Yahoo Finance article
• Positive Sentiment: Market commentary continues to frame TSMC as a must-own AI infrastructure company, with multiple articles highlighting that it sits at the center of the AI compute supply chain. Insider Monkey article
• Neutral Sentiment: TSMC shareholders approved 2025 results and charter changes at the annual meeting, which is mainly a governance update and not a major operating surprise. TipRanks article
• Negative Sentiment: Investors are also weighing the CEO’s warning that AI chip shortages are not ending soon and that TSMC still cannot fully satisfy customer demand, especially in the U.S., which could temper near-term enthusiasm. TipRanks article
• Negative Sentiment: Higher component costs and the long ramp of U.S. manufacturing capacity remain execution risks that could pressure margins or slow how quickly TSMC can convert AI demand into revenue. Yahoo Finance video/article

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on TSM shares. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. DA Davidson restated a "buy" rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Barclays upped their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Finally, Zacks Research lowered Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

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 firm's fifty day moving average price is $384.51 and its 200 day moving average price is $346.12. The stock has a market cap of $2.31 trillion, a PE ratio of 36.99, a P/E/G ratio of 1.30 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be given a $1.1136 dividend. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 24.71%.

Insider Buying and Selling

In other news, VP Bor-Zen Tien acquired 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, May 19th. The shares were acquired at an average price of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. The trade was a 22.10% increase in their position. The transaction 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 company's stock in a transaction that occurred 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 sale, the vice president directly owned 2,495,165 shares in the company, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have purchased 3,346 shares of company stock valued at $218,005. 1.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Quattro Advisors LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $27,000. Stephens Consulting LLC lifted its holdings 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 acquiring an additional 41 shares during the last quarter. Evolution Wealth Management Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after acquiring an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC grew its position in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 36 shares in the last quarter. 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.

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.