Taiwan Semiconductor Manufacturing (NYSE:TSM) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Taiwan Semiconductor Manufacturing (NYSE:TSM) from “hold” to “strong-buy,” adding to a generally bullish analyst backdrop. The stock now has a consensus “Buy” rating and a consensus target price of $490.00.
• TSMC’s recent fundamentals remain strong, with the company reporting quarterly EPS of $4.28 on revenue of $39.89 billion and posting a net margin of 50.31%. Analysts also expect full-year EPS of 15.51.
• Investor sentiment is positive but mixed on valuation and spending: the company has benefited from record profit, strong AI-chip demand, and a raised 2026 revenue outlook, but analysts are also watching heavy capital spending, including a $100 billion Arizona investment, for potential margin pressure.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other equities research analysts have also issued reports on the stock. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday. Susquehanna upped their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday. Needham & Company LLC increased their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Finally, Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a report on Saturday. Three 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.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $490.00.

Taiwan Semiconductor Manufacturing Price Performance

TSM opened at $397.59 on Thursday. The stock's 50-day moving average price is $426.79 and its 200 day moving average price is $377.94. Taiwan Semiconductor Manufacturing has a 12-month low of $223.70 and a 12-month high of $479.00. The firm has a market cap of $2.06 trillion, a price-to-earnings ratio of 28.69, a PEG ratio of 1.02 and a beta of 1.36. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. As a group, sell-side analysts expect that Taiwan Semiconductor Manufacturing will post 15.51 earnings per share for the current year.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president directly owned 2,495,165 shares in the company, valued at $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Bor-Zen Tien acquired 2,000 shares of the business's stock in a transaction on Tuesday, May 19th. The shares were bought at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, 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 disclosure for this purchase is available in the SEC filing. Insiders have purchased 6,857 shares of company stock worth $512,334 over the last three months. Insiders own 1.11% of the company's stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently bought and sold shares of TSM. Rosenberg Matthew Hamilton boosted its stake in Taiwan Semiconductor Manufacturing by 1.7% in the second quarter. Rosenberg Matthew Hamilton now owns 5,149 shares of the semiconductor company's stock valued at $2,459,000 after acquiring an additional 88 shares in the last quarter. GRIMES & Co WEALTH MANAGEMENT LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.1% in the 2nd quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 134,811 shares of the semiconductor company's stock valued at $64,382,000 after purchasing an additional 1,433 shares during the last quarter. Sulzberger Capital Advisors Inc. boosted its position in shares of Taiwan Semiconductor Manufacturing by 4.3% in the 2nd quarter. Sulzberger Capital Advisors Inc. now owns 1,936 shares of the semiconductor company's stock valued at $925,000 after purchasing an additional 80 shares during the period. Pachira Investments Inc. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $290,000. Finally, Liberty Capital Management Inc. purchased a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $300,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

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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