Taiwan Semiconductor Manufacturing (NYSE:TSM) Cut to Buy at Wall Street Zen

Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) from a strong-buy rating to a buy rating in a report published on Saturday morning.

A number of other research analysts also recently issued reports on TSM. Bank of America boosted their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. DA Davidson lifted 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. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Finally, Barclays upped their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned 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 $496.25.

Taiwan Semiconductor Manufacturing Price Performance

Shares of TSM opened at $419.34 on Friday. The business has a 50-day moving average of $426.67 and a 200-day moving average of $388.05. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market capitalization of $2.17 trillion, a price-to-earnings ratio of 30.26, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. Taiwan Semiconductor Manufacturing has a 1 year low of $223.70 and a 1 year high of $479.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The business had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.44 earnings per share for the current year.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The shares were bought at an average cost of $74.39 per share, for a total transaction of $223,170.00. Following the acquisition, the vice president directly owned 4,000 shares in the company, valued at approximately $297,560. This trade represents a 300.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, June 22nd. The stock was acquired at an average cost of $79.19 per share, with a total value of $79,190.00. Following the transaction, the vice president owned 5,000 shares in the company, valued at $395,950. This trade represents a 25.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 18,312 shares of company stock valued at $1,347,058 over the last ninety days. 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 TSM. Brighton Jones LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth $701,000. Bank of Nova Scotia grew its holdings in Taiwan Semiconductor Manufacturing by 12.8% during the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after buying an additional 1,784 shares in the last quarter. FWL Investment Management LLC grew its holdings in Taiwan Semiconductor Manufacturing by 26.5% during the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after buying an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $270,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: July revenue surged 44.7% year over year. TSMC reported approximately NT$467.58 billion ($14.5 billion) in July sales, up 5.6% from June. The result exceeded the company’s full-year growth outlook and reinforces expectations that demand for AI accelerators and advanced chips remains robust. World’s biggest chipmaker TSMC’s sales surge 45% amid buoyant AI demand
• Positive Sentiment: Microsoft’s planned Maia 300 expansion could create substantial future demand. Reports indicate Microsoft is seeking significantly greater TSMC capacity for its next-generation in-house AI chips, potentially exceeding 300,000 units and eventually reaching more than one million. Packaging and component availability remain constraints, but the program highlights TSMC’s role as a key supplier to hyperscalers. Microsoft plans Maia 300 chip reveal in September
• Positive Sentiment: TSMC and Sony are planning a roughly $6.3 billion image-sensor venture in Japan. The project, expected to begin commercial production as early as 2029, could diversify TSMC’s growth beyond computing into smartphone, automotive, robotics and physical-AI applications. Sony, TSMC to spend $6.3 billion jointly make image sensors
• Positive Sentiment: Strong TSMC sales also lifted sentiment toward semiconductor-equipment suppliers, signaling potential increases in wafer-fabrication investment as the company expands advanced capacity. Chip equipment stocks rise after Taiwan Semiconductor revenue surges 45%
• Neutral Sentiment: Multiple senior TSMC executives, including the CEO, COO and CFO, reported small open-market purchases. The buying may signal management confidence, but the transactions were modest relative to the company’s market capitalization.
• Negative Sentiment: Investors appear to have already priced in exceptional AI growth. Despite the record sales increase, TSM shares have struggled for direction, suggesting the strong report was largely anticipated. The stock also trades at a comparatively demanding valuation, increasing sensitivity to any slowdown.
• Negative Sentiment: U.S. lawmakers are urging tighter controls on advanced-chip shipments to Chinese customers. Additional compliance requirements or restrictions could limit some business opportunities and increase geopolitical risk for TSMC. Key Republican urges US to stop advanced chips reaching sanctioned Chinese firms

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.