Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 5.3% - Here's What Happened

Key Points

• Taiwan Semiconductor Manufacturing Company (TSMC) shares rose 5.3% to trade at $264.13, with a notable decline in trading volume compared to the average session.
• Analysts maintain a mostly positive outlook on TSMC, with several firms setting price targets ranging from $240.00 to $270.00, reflecting an average rating of "Buy" and a consensus target of $258.33.
• The company reported a quarterly earnings per share (EPS) of $2.47, exceeding expectations, along with a significant revenue increase of 44.4% year-over-year.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) was up 5.3% on Wednesday . The company traded as high as $262.78 and last traded at $264.13. Approximately 7,910,377 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 14,674,471 shares. The stock had previously closed at $250.92.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on TSM shares. Barclays restated an "overweight" rating and issued a $240.00 price objective (up from $215.00) on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, June 3rd. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, August 31st. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Needham & Company LLC restated a "buy" rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, July 17th. Finally, Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a "positive" rating in a report on Monday, July 14th. Four research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of "Buy" and an average target price of $258.33.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a market capitalization of $1.35 trillion, a PE ratio of 29.64, a price-to-earnings-growth ratio of 1.24 and a beta of 1.23. The company has a current ratio of 2.37, a quick ratio of 2.15 and a debt-to-equity ratio of 0.20. The business's 50 day simple moving average is $238.09 and its two-hundred day simple moving average is $202.43.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its earnings results on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, beating analysts' consensus estimates of $2.13 by $0.34. The business had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. The company's quarterly revenue was up 44.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.48 EPS. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be paid a dividend of $0.8348 per share. The ex-dividend date is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a yield of 1.3%. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 28.16%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently modified their holdings of the business. DekaBank Deutsche Girozentrale grew its position in shares of Taiwan Semiconductor Manufacturing by 0.9% during the 1st quarter. DekaBank Deutsche Girozentrale now owns 1,339,479 shares of the semiconductor company's stock valued at $214,442,000 after acquiring an additional 11,693 shares during the period. Pinnacle Investment Management Ltd bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at $26,661,000. Quantbot Technologies LP grew its position in shares of Taiwan Semiconductor Manufacturing by 452.2% during the 1st quarter. Quantbot Technologies LP now owns 47,425 shares of the semiconductor company's stock valued at $7,873,000 after acquiring an additional 38,837 shares during the period. Duquesne Family Office LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 456.9% during the 1st quarter. Duquesne Family Office LLC now owns 598,780 shares of the semiconductor company's stock valued at $99,397,000 after acquiring an additional 491,265 shares during the period. Finally, Sentry LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 1st quarter valued at $222,000. Institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.