Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 2.2% - Still a Buy?

Key Points

• TSMC shares rose 2.2% in midday trading, reaching an intraday high of $416.49 as investors continued to bid up the stock amid strong momentum.
• Recent coverage emphasizes TSMC as a major AI infrastructure winner, with demand for advanced chips and packaging capacity supporting the rally and driving bullish long-term outlooks.
• Wall Street remains broadly positive: analysts have an average “Buy” rating on the stock, and TSMC also recently raised its quarterly dividend from $0.95 to $1.1136 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) was up 2.2% during mid-day trading on Tuesday . The stock traded as high as $416.49 and last traded at $413.50. Approximately 9,995,251 shares were traded during trading, a decline of 28% from the average daily volume of 13,866,591 shares. The stock had previously closed at $404.52.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is being highlighted as a major winner from the AI buildout, with demand for advanced chips and packaging capacity helping drive the stock’s momentum. Article Title
• Positive Sentiment: Several reports say Taiwan’s stock market has overtaken India in value largely because of TSMC’s rally, underscoring how dominant the company has become in the global semiconductor trade. Article Title
• Positive Sentiment: Analysts and market commentary continue to frame TSMC as a key long-term AI compounder, with management reportedly guiding for strong 2026 revenue growth driven by 3nm and 2nm demand. Article Title
• Neutral Sentiment: TSMC filed a routine April portfolio update showing a shift toward fixed income, but the filing did not indicate any change in capital structure or core operations. Article Title
• Neutral Sentiment: Huawei’s claim that it can narrow the chipmaking gap with TSMC by 2031 adds competitive noise, but the technology remains years away and does not change TSMC’s near-term leadership. Article Title
• Negative Sentiment: Investor attention was also drawn to insider selling, including a report that a TSMC executive sold nearly $14 million in shares, which can create some sentiment pressure even if it does not change fundamentals. Article Title
• Negative Sentiment: Huawei’s announced chipmaking breakthrough also raises longer-term competitive concerns for Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM, as China pushes harder toward semiconductor self-sufficiency. Article Title

Wall Street Analyst Weigh In

A number of brokerages have weighed in on TSM. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. DA Davidson reissued a "buy" rating and set a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. Finally, Zacks Research lowered Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Two investment 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 stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 2.2%

The firm's 50 day moving average price is $371.93 and its 200-day moving average price is $339.28. The company has a current ratio of 2.49, a quick ratio of 2.32 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.14 trillion, a P/E ratio of 34.40, a price-to-earnings-growth ratio of 1.18 and a beta of 1.39.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 24.71%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien bought 2,000 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were purchased at an average price of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president owned 11,051 shares of the company's stock, valued at $772,575.41. This represents a 22.10% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction dated 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 transaction, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders bought a total of 3,346 shares of company stock worth $218,005 over the last 90 days. 1.11% of the stock is owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently modified their holdings of the company. Axiom Investment Management LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the first quarter worth $509,000. WNY Asset Management LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 1st quarter valued at $899,000. Segall Bryant & Hamill LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 8.0% in the 1st quarter. Segall Bryant & Hamill LLC now owns 53,881 shares of the semiconductor company's stock valued at $18,209,000 after buying an additional 4,000 shares in the last quarter. Wellington Grp LLC raised its stake in Taiwan Semiconductor Manufacturing by 68.0% during the 1st quarter. Wellington Grp LLC now owns 556 shares of the semiconductor company's stock worth $188,000 after buying an additional 225 shares during the period. Finally, Verus Capital Partners LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 82.6% during the first quarter. Verus Capital Partners LLC now owns 13,628 shares of the semiconductor company's stock worth $4,606,000 after acquiring an additional 6,166 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.

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