Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares dropped 2.7% during trading on Wednesday . The company traded as low as $318.54 and last traded at $318.7010. Approximately 11,690,180 shares changed hands during trading, a decline of 26% from the average daily volume of 15,812,262 shares. The stock had previously closed at $327.43.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts highlight TSMC’s AI leadership and limited near-term competition, supporting upside from sustained GPU and HPC demand. TSMC Stock Can Keep Winning From AI, J.P. Morgan Says.
• Positive Sentiment: Goldman Sachs and other brokers raised targets and reiterated conviction that AI-driven capacity and pricing power justify a higher valuation. Goldman Sachs stuns with Taiwan Semiconductor stock price target
• Positive Sentiment: Policy shifts that could allow NVIDIA to sell H200 GPUs to China may create a multi-year revenue tail for TSMC if NVIDIA ramps production on TSMC nodes. Why an NVIDIA Chip Could Supercharge TSMC’s Next Rally
• Neutral Sentiment: TSMC secured a one‑year U.S. export license to keep importing U.S. equipment for China operations—reduces a near-term operational risk but still leaves longer-term policy uncertainty. Why Is Taiwan Semiconductor Stock Gaining Tuesday?
• Neutral Sentiment: TSMC Arizona named a new treasurer as U.S. operations expand—operational governance detail that supports U.S. buildout but is not a major earnings driver. TSMC Arizona Names New Treasurer as US Operations Expand
• Negative Sentiment: TSMC is at/near 52‑week highs and carries a premium multiple; some analysts and investors warn of profit‑taking and near‑term downside if guidance or margin commentary disappoints. TSM Hits 52-Week High: Should You Hold the Stock or Book Profits?
• Negative Sentiment: Geopolitical and export-approval risk remains a wildcard (e.g., U.S./China approvals for large GPU sales); policy reversals could remove the potential China tail or reintroduce supply restrictions. Taiwan Semiconductor: The Ultimate AI Infrastructure Play With A $358 Target And +18% Upside

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Barclays boosted their target price on shares of Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research note on Friday, October 17th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, December 29th. The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday. Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a “positive” rating in a report on Friday, October 10th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Eight research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $355.00.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market cap of $1.65 trillion, a PE ratio of 32.69, a P/E/G ratio of 0.92 and a beta of 1.29. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The stock has a 50-day simple moving average of $294.52 and a 200-day simple moving average of $268.26.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.34% and a net margin of 43.72%. Equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 17th will be paid a $0.9678 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $3.87 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s payout ratio is 25.74%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently modified their holdings of the stock. 1248 Management LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the first quarter valued at approximately $28,000. Heartwood Wealth Advisors LLC bought a new position in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at about $32,000. Resources Management Corp CT ADV acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $32,000. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $33,000. Finally, First Command Advisory Services Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 174.1% during the 2nd quarter. First Command Advisory Services Inc. now owns 159 shares of the semiconductor company’s stock worth $36,000 after buying an additional 101 shares in the last quarter. 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.