Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.5% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 1.5% during mid-day trading on Thursday . The company traded as low as $322.10 and last traded at $368.3260. Approximately 16,761,989 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 15,352,129 shares. The stock had previously closed at $374.09.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported strong consolidated net revenue for January 2026 (NT$401.26bn), +19.8% month‑over‑month and +36.8% year‑over‑year; the board also approved a cash dividend — a direct support to the stock’s Fundamentals and yield story. TSMC Reports Strong January Revenue Growth
• Positive Sentiment: Market reaction to the dividend pushed TSM higher in some sessions (reported trading up after the announcement), reflecting investor appetite for cash returns alongside growth. TSM Trading Up After Dividend Announcement
• Positive Sentiment: Analysts and commentary are reframing TSM as an AI‑era play: Seeking Alpha notes Nvidia has become TSM’s largest customer and AI chips now drive growth — implying stronger pricing power and stickier demand versus the handset era. That longer‑term structural story supports earnings visibility. Taiwan Semiconductor: Transition From An iPhone To An AI Era
• Positive Sentiment: Multiple market writeups and stock‑picks lists (e.g., The Motley Fool) continue to include TSM as a core chipmaker exposure for AI/data‑center buildouts, keeping investor interest in the name. 5 Best Artificial Intelligence Stocks to Buy in February
• Neutral Sentiment: Market rotation commentary (Chaikin/MarketBeat) favors AI infrastructure and chip‑chain suppliers (testing, packaging, power)—a positive backdrop for TSM but one that spreads gains across many suppliers rather than guaranteeing further outsized moves for TSM alone. Is AI Really Eating Software? A Wall Street Veteran Says No—Here’s Why
• Negative Sentiment: Some coverage highlights that major cloud providers (Microsoft, Google, Amazon) are signaling caution on near‑term AI capex, which could temper the pace of future orders and create short‑term volatility for chip suppliers. That risk helps explain profit‑taking despite good January sales. These 3 stocks are quietly soaring as Microsoft, Google slump on AI spending

Analyst Upgrades and Downgrades

TSM has been the subject of several recent research reports. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. UBS Group set a $330.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Four research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Trading Down 0.4%

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The stock has a market cap of $1.90 trillion, a P/E ratio of 34.41, a PEG ratio of 1.03 and a beta of 1.31. The firm’s fifty day moving average price is $321.78 and its two-hundred day moving average price is $288.42.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. The business had revenue of $32.50 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.18% and a net margin of 45.13%. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a $0.9503 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Quattro Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $27,000. Strategic Advocates LLC raised its stake 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 buying an additional 36 shares during the last quarter. Stephens Consulting LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 41 shares in the last quarter. Finally, Ares Financial Consulting LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $29,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

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.