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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price fell 1.5% during trading on Tuesday . The stock traded as low as $381.30 and last traded at $393.1350. Approximately 18,062,750 shares were traded during trading, an increase of 28% from the average session volume of 14,066,888 shares. The stock had previously closed at $399.09.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Strong AI demand and higher growth investment support the long-term outlook. TSMC reportedly raised its 2026 capital-expenditure budget to as much as $64 billion to expand capacity for artificial intelligence and high-performance computing demand. The company is not currently expecting major capacity bottlenecks. TSMC Raises 2026 CapEx Budget to Capture Long-Term AI, HPC Demand
• Positive Sentiment: Analyst confidence remains high. Needham raised its price target on Taiwan Semiconductor Manufacturing to $530 from $480 and maintained a “buy” rating, implying substantial potential upside from recent trading levels. Other coverage has also identified TSM as a leading beneficiary of AI-chip demand. Needham Raises TSMC Price Target
• Positive Sentiment: Multiple company executives purchased shares. Vice Presidents Bor-Zen Tien and Shyue-Shyh Lin disclosed several purchases totaling thousands of shares, modestly increasing their respective holdings. Insider buying can provide a supportive confidence signal, although the transactions are not large relative to TSMC’s market capitalization. TSMC Insider Purchase Filing
• Neutral Sentiment: Japan operations are gradually returning after an earthquake. TSMC said employees at its Japan Advanced Semiconductor Manufacturing facility in Kumamoto were safe following a precautionary evacuation. Operations have begun to resume, while some construction work remains paused because of possible aftershocks. The site itself was not damaged, limiting the potential business impact. TSMC Says Japan Plant Gradually Resuming Operations After Earthquake
• Negative Sentiment: Sector-wide risk aversion is pressuring TSM. Asian technology markets weakened sharply as investors questioned the sustainability of the AI investment boom and assessed competitive threats from China’s semiconductor industry. TSMC’s premium valuation makes the stock particularly sensitive to shifts in AI-growth expectations. Why Are Tech Stocks Tanking?

Wall Street Analyst Weigh In

A number of brokerages recently commented on TSM. Bank of America increased their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. DA Davidson boosted their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 18th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Finally, Weiss Ratings cut Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, July 13th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $496.25.

Taiwan Semiconductor Manufacturing Price Performance

The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.04 trillion, a P/E ratio of 28.36, a PEG ratio of 0.93 and a beta of 1.36. The business’s fifty day moving average is $427.75 and its 200 day moving average is $382.65.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be issued a $1.1136 dividend. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is 21.43%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, the vice president owned 5,000 shares of the company’s stock, valued at $395,950. This represents a 25.00% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bor-Zen Tien acquired 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average cost of $74.39 per share, with a total value of $223,170.00. Following the completion of the acquisition, the vice president owned 4,000 shares in the company, valued at $297,560. This trade represents a 300.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have acquired 14,857 shares of company stock valued at $1,099,124. 1.11% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Tiger Global Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Van ECK Associates Corp increased its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after buying an additional 1,750,824 shares during the period. Life Cycle Investment Partners Ltd bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at about $495,163,000. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after buying an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter worth about $360,443,000. Institutional investors 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.