Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.1% - Time to Sell?

Key Points

• TSMC shares fell 2.1% on Monday, trading as low as $391.05 before last changing hands around $395.84, below the previous close of $404.35.
• Despite the pullback, analyst sentiment remains constructive: the stock carries an average “Buy” rating and a consensus price target of about $404.29, with several firms recently reiterating or raising bullish ratings and targets.
• Fundamentals and AI demand remain key supports, with the article highlighting strong profitability, a larger dividend, and ongoing optimism that TSMC will benefit from long-term semiconductor and AI growth, though geopolitical risk in Taiwan remains a concern.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares were down 2.1% during mid-day trading on Monday . The company traded as low as $391.05 and last traded at $395.8420. Approximately 11,967,177 shares changed hands during trading, a decline of 15% from the average daily volume of 14,066,553 shares. The stock had previously closed at $404.35.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Several articles argue TSMC remains attractive as a long-term AI and chip manufacturing play, including commentary that the stock looks appealing below $400 and that the company is still a “multibagger” because of its dominant foundry position. Buy TSM Below $400
• Positive Sentiment: Investors are also viewing TSMC as a core beneficiary of AI-driven semiconductor demand, with reports citing strong hedge-fund interest and expectations for a much larger global chip market by 2030. Taiwan Semiconductor Manufacturing (TSM): One of the Best Fundamentally Strong Stocks to Buy Now
• Positive Sentiment: Tiger Global reportedly increased its TSMC stake, which can be interpreted as a vote of confidence from a major institutional investor. Tiger Global boosts TSMC stake, adding 1.84M shares
• Neutral Sentiment: TSMC is trimming its stake in Vanguard International Semiconductor to refocus capital on core operations; this is not a major surprise, but it reinforces management’s emphasis on valuation discipline and strategic focus. TSMC Trims Vanguard Stake To Refocus Capital And Valuation Story
• Neutral Sentiment: ARK Invest sold a sizable TSMC position while rotating into other AI and healthcare names, which reflects portfolio repositioning more than a clear thesis change on TSMC itself. ARK Invest Dumps $40M in TSMC Stock, Pivots to Cerebras and AI Healthcare
• Negative Sentiment: Geopolitical risk around Taiwan remains a headline concern, and that uncertainty can weigh on TSMC shares even when the company’s fundamentals are strong. Game Theory Says Taiwan May Be The World's Most Dangerous Standoff

Wall Street Analyst Weigh In

A number of analysts have recently commented on TSM shares. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Needham & Company LLC boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. Finally, Wedbush reissued an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.51 and a quick ratio of 2.32. The company has a market cap of $2.05 trillion, a price-to-earnings ratio of 32.93, a price-to-earnings-growth ratio of 1.18 and a beta of 1.39. The stock has a 50-day moving average price of $365.38 and a 200 day moving average price of $335.07.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's payout ratio is presently 24.71%.

Insiders Place Their Bets

In other news, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction on Sunday, March 22nd. The stock was purchased at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the acquisition, the vice president owned 9,051 shares in the company, valued at approximately $506,222.43. This trade represents a 12.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Over the last three months, insiders have acquired 1,346 shares of company stock valued at $78,185. 1.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of TSM. Brighton Jones LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company's stock valued at $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in Taiwan Semiconductor Manufacturing in the second quarter valued at $701,000. Bank of Nova Scotia increased its stake in Taiwan Semiconductor Manufacturing by 12.8% in the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company's stock valued at $3,556,000 after buying an additional 1,784 shares during the last quarter. FWL Investment Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 26.5% in the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock valued at $57,000 after buying an additional 53 shares during the last quarter. Finally, Main Street Financial Solutions LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $270,000. 16.51% of the stock is owned by institutional investors and hedge funds.

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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