Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.8% Higher – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 1.8% during mid-day trading on Thursday . The stock traded as high as $448.01 and last traded at $444.5630. Approximately 10,801,274 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 13,745,166 shares. The stock had previously closed at $436.69.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s CEO said AI demand remains strong and the company expects robust growth over the next few years, reinforcing its position as a key supplier to Nvidia, Apple, and other AI leaders. Reuters article
• Positive Sentiment: Analyst coverage and recent commentary remain bullish, with firms like Bernstein and BofA reiterating confidence in TSMC’s advanced-node leadership and AI-driven earnings potential. Yahoo Finance article
• Positive Sentiment: Market commentary continues to frame TSMC as a must-own AI infrastructure company, with multiple articles highlighting that it sits at the center of the AI compute supply chain. Insider Monkey article
• Neutral Sentiment: TSMC shareholders approved 2025 results and charter changes at the annual meeting, which is mainly a governance update and not a major operating surprise. TipRanks article
• Negative Sentiment: Investors are also weighing the CEO’s warning that AI chip shortages are not ending soon and that TSMC still cannot fully satisfy customer demand, especially in the U.S., which could temper near-term enthusiasm. TipRanks article
• Negative Sentiment: Higher component costs and the long ramp of U.S. manufacturing capacity remain execution risks that could pressure margins or slow how quickly TSMC can convert AI demand into revenue. Yahoo Finance video/article

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TSM. DA Davidson reissued a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Two equities 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. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

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 business has a 50 day moving average price of $384.51 and a 200 day moving average price of $346.12. The stock has a market cap of $2.31 trillion, a P/E ratio of 36.99, a PEG ratio of 1.30 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The firm had revenue of $30.65 billion during 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 expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 24.71%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien purchased 2,000 shares of the business’s stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the acquisition, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders bought 3,346 shares of company stock worth $218,005. Company insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the stock. Twin City Private Wealth LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 0.3% during the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after buying an additional 25 shares during the last quarter. Financial Life Planners lifted its position in Taiwan Semiconductor Manufacturing by 3.4% during the 1st quarter. Financial Life Planners now owns 786 shares of the semiconductor company’s stock worth $266,000 after acquiring an additional 26 shares during the period. Corus Family Wealth Advisors grew its stake in shares of Taiwan Semiconductor Manufacturing by 1.1% in the 1st quarter. Corus Family Wealth Advisors now owns 2,401 shares of the semiconductor company’s stock valued at $811,000 after purchasing an additional 26 shares during the last quarter. Lodestar Private Asset Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 0.9% in the 1st quarter. Lodestar Private Asset Management LLC now owns 2,896 shares of the semiconductor company’s stock valued at $979,000 after purchasing an additional 27 shares during the last quarter. Finally, Mitchell Sinkler & Starr PA increased its holdings in shares of Taiwan Semiconductor Manufacturing by 1.9% in the fourth quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock valued at $450,000 after purchasing an additional 28 shares during the period. 16.51% of the stock is currently owned by institutional investors.

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.