Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 4.7% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded down 4.7% during trading on Wednesday . The company traded as low as $372.72 and last traded at $373.8350. 21,256,787 shares were traded during trading, an increase of 50% from the average session volume of 14,132,255 shares. The stock had previously closed at $392.31.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported record second-quarter results, with revenue of roughly $40 billion, and raised its outlook. Strong demand from artificial-intelligence and high-performance-computing customers supports the company’s growth outlook. Record results and raised guidance
• Positive Sentiment: Needham raised its TSMC price target to $530 from $480 and maintained a buy rating, adding to a generally bullish analyst consensus. The target increase reflects expectations for sustained AI-chip and advanced-node demand. Needham raises TSMC price target
• Positive Sentiment: Multiple TSMC vice presidents disclosed open-market purchases totaling hundreds of thousands of dollars. Although small relative to TSMC’s market value, the buying provides a modest confidence signal from company insiders. TSMC insider buying
• Positive Sentiment: Amkor’s 10-year agreement with TSMC for an advanced-packaging facility in Arizona highlights expanding U.S. capacity and the strategic importance of TSMC’s chips to AI and high-performance-computing supply chains. Amkor lands long-term TSMC Arizona deal
• Neutral Sentiment: TSMC’s Japan Advanced Semiconductor Manufacturing plant began gradually resuming operations after a strong earthquake. Workers were evacuated safely and the construction site was not damaged, but some construction activity remains suspended as a precaution against aftershocks. TSMC Japan plant resumes operations
• Negative Sentiment: A broader technology and semiconductor slump, driven by concerns about the durability of AI spending and rising Chinese chipmaking competition, pressured chip stocks across Asian markets. TSMC’s pullback despite strong earnings suggests investors are taking profits and demanding evidence that elevated AI expectations can continue. Semiconductor slump hits Asian markets

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on TSM. TD Cowen raised their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. DA Davidson boosted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Susquehanna upped their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, July 13th. Finally, Bank of America boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned 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 $496.25.

Taiwan Semiconductor Manufacturing Trading Down 4.7%

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The stock has a market capitalization of $1.94 trillion, a price-to-earnings ratio of 26.97, a PEG ratio of 0.92 and a beta of 1.36. The business has a 50 day simple moving average of $427.77 and a 200-day simple moving average of $383.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released 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 for the quarter. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.2%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 1,000 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the acquisition, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. The trade was a 25.00% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The stock was bought at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the transaction, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. This represents a 3.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 14,857 shares of company stock worth $1,099,124 over the last three months. 1.11% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Quattro Advisors LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at $27,000. Strategic Advocates LLC grew its position in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares in the last quarter. Ares Financial Consulting LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $29,000. Finally, Basepoint Wealth LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $31,000. 16.51% of the stock is owned by institutional investors and hedge funds.

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.