Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 6.9% - Here's What Happened

Key Points

• TSMC shares fell 6.9% on Wednesday, trading as low as $443.47 after closing at $477.57, with volume running well above average.
• The drop came amid a broader semiconductor selloff after Bank of America flagged “bubble risk,” even though TSMC has recently benefited from strong AI-related demand and positive sentiment.
• Despite the pullback, analysts remain generally constructive: the stock carries an average Buy rating and recent target-price hikes, while TSMC also raised its quarterly dividend to $1.1136 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report)'s stock price traded down 6.9% during mid-day trading on Wednesday . The stock traded as low as $443.47 and last traded at $444.6240. 18,437,948 shares were traded during trading, an increase of 32% from the average daily volume of 13,955,866 shares. The stock had previously closed at $477.57.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC was highlighted as a key winner from the AI capex boom, with multiple articles arguing the stock still has room to run because of rising demand for advanced chips and manufacturing leadership. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: Analysts continue to sound constructive on TSMC, including a recent earnings estimate increase and a consensus “Buy” rating, which supports the longer-term bull case. Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM Receives Consensus Rating of "Buy" from Analysts
• Positive Sentiment: President Trump said TSMC is doubling the size of its chipmaking facilities in Arizona, reinforcing the company’s U.S. expansion story and potential strategic importance. Trump says Taiwan is doubling the size of chipmaking plant in Arizona
• Positive Sentiment: TSMC also hit a 52-week high, reflecting strong recent momentum and investor confidence in its AI-linked growth outlook. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Hit a 52 Week High, Can the Run Continue?
• Neutral Sentiment: A TSMC vice president bought 1,000 shares, a modest insider confidence signal, but not a major near-term catalyst. Taiwan Semiconductor Manufacturing NYSE: TSM VP Acquires $76,640.00 in Stock
• Negative Sentiment: TSMC shares were hit by a broader semiconductor selloff after Bank of America flagged “bubble risk,” suggesting some investors are taking profits after the stock’s strong AI-driven rally. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Weiss Ratings reiterated a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, June 17th. Needham & Company LLC upped their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 16th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Finally, Bank of America upped their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $449.38.

Taiwan Semiconductor Manufacturing Stock Down 6.9%

The stock's 50-day moving average price is $417.94 and its two-hundred day moving average price is $366.08. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $2.31 trillion, a P/E ratio of 36.99, a P/E/G ratio of 1.15 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The business had revenue of $30.65 billion during the quarter. As a group, research analysts expect 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 declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. This is an increase 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 presently 25.12%.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, June 22nd. The stock was acquired at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, the vice president owned 5,000 shares of the company's stock, valued at approximately $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 accessible through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction 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. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders acquired 5,496 shares of company stock valued at $404,567. Company insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TSM. Quattro Advisors LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth approximately $27,000. Stephens Consulting LLC raised its stake in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 41 shares in the last quarter. Evolution Wealth Management Inc. raised its stake in Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC lifted its position in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 36 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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