Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.3% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded down 1.3% on Friday . The stock traded as low as $417.25 and last traded at $419.2790. 11,151,342 shares were traded during mid-day trading, a decline of 19% from the average session volume of 13,800,756 shares. The stock had previously closed at $424.86.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is leaning into the next phase of AI chip design, saying energy efficiency is becoming the key constraint for future chips. That could strengthen demand for its advanced manufacturing and packaging capabilities as customers seek performance without excessive power use. TSMC Puts AI Power Constraints At Center Of Future Chip Strategy
• Positive Sentiment: Several recent pieces highlight TSMC as one of the best-positioned semiconductor names as AI demand broadens, with analysts and investors viewing it as a major infrastructure winner alongside other leading chip companies. ASML vs. TSMC: Better Semi Stock to Buy Right Now?
• Positive Sentiment: Coverage comparing TSMC with Broadcom reinforces the idea that the company remains close to fresh highs because of robust AI-related business trends and broad exposure across the chip ecosystem. TSM vs Broadcom: Both Nearing 52-Week High, Only One is a Buy
• Positive Sentiment: Reuters reported that MediaTek supports both TSMC’s and Intel’s advanced packaging technologies, underscoring that TSMC remains a preferred option for major chip designers looking for leading-edge manufacturing solutions. Taiwan’s MediaTek says it supports both TSMC and Intel’s advanced packaging technologies
• Neutral Sentiment: Broader semiconductor commentary from Applied Materials and market coverage continues to describe the AI chip cycle as exceptionally strong, which supports the sector backdrop but does not add a direct new catalyst for TSMC. This is the greatest time ever for semiconductors, says CEO of key equipment supplier
• Negative Sentiment: Some recent articles warn that TSMC’s valuation is getting stretched after a strong run, and that the stock is pressing near 52-week highs. That can create pressure from profit-taking even when fundamentals remain strong. Taiwan Semiconductor Stock Nearing 52-Week High: Buy, Sell or Hold?

Analyst Ratings Changes

Several analysts have recently weighed in on the company. DA Davidson restated a “buy” rating and issued a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 22nd. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Finally, Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Down 1.3%

The stock has a market capitalization of $2.17 trillion, a price-to-earnings ratio of 34.88, a price-to-earnings-growth ratio of 1.23 and a beta of 1.39. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a 50-day moving average of $376.65 and a two-hundred day moving average of $342.03.

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

Taiwan Semiconductor Manufacturing Increases Dividend

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

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the transaction, the vice president directly owned 2,495,165 shares of the company’s stock, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bor-Zen Tien purchased 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the transaction, the vice president directly owned 11,051 shares of the company’s stock, valued at $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 3,346 shares of company stock worth $218,005 over the last three months. 1.11% of the stock is owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the company. Fisher Asset Management LLC grew its position in Taiwan Semiconductor Manufacturing by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after acquiring an additional 313,773 shares in the last quarter. Van ECK Associates Corp grew its position in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Bank of America Corp DE grew its position in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after acquiring an additional 966,926 shares in the last quarter. Jennison Associates LLC grew its position in Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock worth $4,070,393,000 after acquiring an additional 802,757 shares in the last quarter. Finally, Alliancebernstein L.P. grew its position in Taiwan Semiconductor Manufacturing by 2.2% in the third quarter. Alliancebernstein L.P. now owns 10,687,037 shares of the semiconductor company’s stock worth $2,984,783,000 after acquiring an additional 229,237 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.