Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.7% Higher - Still a Buy?

Key Points

• TSMC shares rose 2.7% on Thursday, trading around $419.67 after briefly touching $422.25, as investors continued to react positively to the company’s momentum.
• Analysts have been raising earnings estimates and price targets, citing strong AI-related demand; Barclays lifted its target to $470, and the stock’s consensus rating remains a Buy.
• Recent business updates also look supportive, including May revenue growth of about 30% and a higher quarterly dividend of $1.1136 per share, reinforcing confidence in TSMC’s growth and cash generation.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price was up 2.7% during trading on Thursday . The stock traded as high as $422.25 and last traded at $419.6720. Approximately 13,735,504 shares changed hands during trading, a decline of 1% from the average daily volume of 13,829,621 shares. The stock had previously closed at $408.75.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts lifted earnings estimates for TSMC’s FY2026 and FY2027, signaling confidence that AI-driven demand can keep growth strong. Article Title
• Positive Sentiment: TSMC reported May revenue growth of roughly 30%, showing continued momentum in chip sales and supporting expectations that second-quarter results remain on target. Article Title
• Positive Sentiment: Reports that Google may split future AI chip production between TSMC and Samsung highlight strong demand for TSMC’s manufacturing capacity, even amid a capacity crunch. Article Title

Wall Street Analyst Weigh In

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

Taiwan Semiconductor Manufacturing Trading Up 2.7%

The firm's 50 day simple moving average is $393.77 and its two-hundred day simple moving average is $351.18. The stock has a market capitalization of $2.18 trillion, a P/E ratio of 34.91, a P/E/G ratio of 1.25 and a beta of 1.38. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion for the quarter. As a group, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.29 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's payout ratio is 25.04%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Tzu-Sou Chuang sold 200,000 shares of the business'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 transaction of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. The trade was a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Bor-Zen Tien bought 2,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were purchased 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 of the company's stock, valued at $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have bought 3,496 shares of company stock valued at $229,407. Corporate insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Fisher Asset Management LLC lifted its position in Taiwan Semiconductor Manufacturing by 1.8% in 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 acquiring an additional 313,773 shares in the last quarter. Van ECK Associates Corp boosted its stake 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 valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Bank of America Corp DE increased its holdings 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 worth $4,832,708,000 after purchasing an additional 966,926 shares in the last quarter. Jennison Associates LLC increased its holdings in Taiwan Semiconductor Manufacturing by 6.4% during the 4th quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company's stock worth $4,070,393,000 after purchasing an additional 802,757 shares in the last quarter. Finally, Alliancebernstein L.P. raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.2% in the third quarter. Alliancebernstein L.P. now owns 10,687,037 shares of the semiconductor company's stock worth $2,984,783,000 after purchasing an additional 229,237 shares during the last quarter. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

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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