Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.8% Higher – Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were up 1.8% during trading on Monday . The stock traded as high as $359.60 and last traded at $355.28. Approximately 14,458,306 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 15,141,553 shares. The stock had previously closed at $348.85.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: U.S. officials are planning carve-outs for “Big Tech” chips from the next wave of tariffs, with exemptions tied to TSMC’s U.S. investment commitments — this reduces near-term tariff risk for TSMC’s largest customers and supports demand for the company’s U.S. fabs. US plans Big Tech carve-out from next wave of chip tariffs
• Positive Sentiment: NVIDIA’s Jensen Huang warned TSMC likely must roughly double capacity to meet massive AI demand — a signal of sustained order flow and continued multi-year capex that supports revenue growth for TSMC (but implies heavy investment needs). TSMC Must Double Its Capacity to Meet Massive AI Demand, According to Jensen Huang
• Positive Sentiment: Analyst and media bullishness is widespread: TSMC has been highlighted in Zacks/Yahoo bull coverage and included in lists of top AI/tech buys, supporting investor optimism and higher analyst targets (consensus targets imply meaningful upside). TSM Soars 69% in a Year: Should Investors Still Buy the Stock?
• Neutral Sentiment: TSMC is expanding capacity in Arizona, which is positive for U.S. presence and customer diversification — but Taiwanese officials are signaling limits on how much production they’ll relocate, creating a mixed operational/political picture. TSMC (TSM) Expands in Arizona, but Taiwan Draws Limits on U.S. Chip Shift
• Neutral Sentiment: Mainstream buy-list inclusions (Fool, InsiderMonkey, MSN) reinforce the long-term AI/capex thesis; they sustain investor interest but are less immediate catalysts than policy or supply news. Strong Analyst Sentiment on Taiwan Semiconductor Manufacturing (TSM) As AI Demand Drives Massive 2026 Capital Spending
• Negative Sentiment: Taiwanese officials have pushed back on U.S. demands for a large-scale (e.g., 40%) chip production shift to the U.S.; that resistance increases geopolitical and policy risk, which could complicate subsidy-driven expansion or slow U.S. capacity build-out. ‘Impossible!’: Taiwan slams the brakes on US demands for 40% chip shift

Analysts Set New Price Targets

Several brokerages have weighed in on TSM. Freedom Capital upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Barclays boosted their target price on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research note on Friday, January 16th. Finally, Dbs Bank raised Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a research report on Friday, January 23rd. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market cap of $1.84 trillion, a PE ratio of 33.36, a PEG ratio of 0.98 and a beta of 1.31. The stock has a 50 day simple moving average of $314.52 and a two-hundred day simple moving average of $284.76. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The firm had revenue of $32.50 billion during the quarter. Equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be issued a dividend of $0.9678 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 23.57%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently added to or reduced their stakes in TSM. Jennison Associates LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 26.7% during the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company’s stock worth $2,728,478,000 after purchasing an additional 2,537,760 shares during the last quarter. Brown Advisory Inc. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 43.2% in the 2nd quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company’s stock worth $1,506,389,000 after acquiring an additional 2,006,745 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 109.5% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company’s stock valued at $798,640,000 after acquiring an additional 1,842,951 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 268.2% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock valued at $566,152,000 after acquiring an additional 1,820,852 shares in the last quarter. Finally, Life Cycle Investment Partners Ltd acquired a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $495,163,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.