Taiwan Semiconductor Manufacturing (NYSE:TSM) Upgraded to Buy at Wall Street Zen

Key Points

• Taiwan Semiconductor Manufacturing (NYSE: TSM) has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, signaling increased investor confidence in the company's performance.
• TSM had a significant earnings report, with $2.47 earnings per share for the quarter, surpassing the expected $2.13, and revenue of $30.07 billion, up 44.4% from the previous year.
• Major investment firms, including Susquehanna and Barclays, have raised their price targets for TSM shares, contributing to a general consensus rating of "Buy" among analysts with a price target average of $258.33.

Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing (NYSE:TSM - Free Report) from a hold rating to a buy rating in a research report sent to investors on Sunday morning.

TSM has been the topic of a number of other reports. Needham & Company LLC reissued a "buy" rating and set a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Thursday, May 22nd. Susquehanna boosted their price target on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Finally, Barclays restated an "overweight" rating and set a $240.00 target price (up previously from $215.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, June 3rd. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $258.33.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE:TSM traded down $7.26 on Friday, reaching $231.01. 15,511,696 shares of the company's stock were exchanged, compared to its average volume of 10,208,586. The business's 50-day moving average is $234.90 and its two-hundred day moving average is $199.78. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $1.20 trillion, a price-to-earnings ratio of 26.34, a PEG ratio of 1.10 and a beta of 1.19. Taiwan Semiconductor Manufacturing has a fifty-two week low of $134.25 and a fifty-two week high of $248.28.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. The firm had revenue of $30.07 billion for the quarter, compared to analyst estimates of $28.50 billion. During the same quarter last year, the firm earned $1.48 earnings per share. The company's revenue for the quarter was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be issued a $0.8348 dividend. The ex-dividend date is Thursday, December 11th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. This represents a $3.34 annualized dividend and a yield of 1.4%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is currently 29.65%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Large investors have recently modified their holdings of the business. Goldman Sachs Group Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 55.6% in the first quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock worth $2,872,814,000 after buying an additional 6,180,445 shares during the last quarter. Bank of America Corp DE grew its stake in Taiwan Semiconductor Manufacturing by 0.8% during the 2nd quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock worth $3,353,348,000 after buying an additional 115,158 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Taiwan Semiconductor Manufacturing by 19.1% in the first quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock worth $2,050,141,000 after buying an additional 1,984,835 shares during the last quarter. Jennison Associates LLC grew its holdings in Taiwan Semiconductor Manufacturing by 26.7% in the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock valued at $2,728,478,000 after purchasing an additional 2,537,760 shares during the period. Finally, Alliancebernstein L.P. grew its position in shares of Taiwan Semiconductor Manufacturing by 18.0% in the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock valued at $2,368,587,000 after purchasing an additional 1,593,786 shares in the last quarter. Institutional investors own 16.51% of the company's stock.

Taiwan Semiconductor Manufacturing Company Profile

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.