Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3.1% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price dropped 3.1% during trading on Friday . The company traded as low as $398.83 and last traded at $404.9470. Approximately 11,740,988 shares traded hands during mid-day trading, a decline of 17% from the average daily volume of 14,087,590 shares. The stock had previously closed at $417.72.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Bank of America reiterated its Buy rating after TSMC’s technology symposium, saying recent concerns are overdone and highlighting continued confidence in the company’s outlook. Buy TSMC stock as ’recent concerns are overdone’: BofA
• Positive Sentiment: TSMC raised its long-term semiconductor market forecast to $1.5 trillion by 2030, driven by AI and high-performance computing demand, reinforcing a strong multi-year growth narrative. TSMC’s US$1.5t Chip Outlook Reshapes AI Supply Chain Risks And Rewards
• Positive Sentiment: Executives also said TSMC is accelerating investment in 2nm chips, CoWoS advanced packaging, and AI infrastructure, which supports future revenue growth from leading-edge AI demand. Taiwan Semi Accelerates 2nm And AI Packaging Push
• Neutral Sentiment: TSMC filed its Q1 2026 reviewed financials with the U.S. SEC, a routine disclosure with limited direct stock impact. TSMC Files Q1 2026 Reviewed Financials with U.S. SEC
• Negative Sentiment: TSMC announced plans to sell up to 152 million shares of Vanguard International Semiconductor in a block trade, reducing its stake and prompting investor focus on the divestiture. TSMC plans to sell 152 million shares in chipmaker Vanguard
• Negative Sentiment: Reports that Cathie Wood’s ARK Invest sold TSMC at or near record highs may be adding to short-term profit-taking pressure on the stock. Cathie Wood’s Semiconductor Trades: Bets on Cerebras Stock after Explosive IPO Debut, Sells TSMC at Record High

Wall Street Analysts Forecast Growth

TSM has been the topic of a number of research reports. Needham & Company LLC lifted their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. TD Cowen lifted their price target on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a report on Friday, January 16th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. DA Davidson reissued a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Finally, Barclays boosted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

The business’s 50-day moving average price is $364.44 and its 200 day moving average price is $334.32. The stock has a market capitalization of $2.10 trillion, a PE ratio of 33.69, a price-to-earnings-growth ratio of 1.17 and a beta of 1.39. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.32 and a current ratio of 2.51.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The firm had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 38.17%. Research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 24.71%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien bought 1,000 shares of the business’s stock in a transaction that occurred on Sunday, March 22nd. The stock was bought at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the transaction, the vice president owned 9,051 shares of the company’s stock, valued at approximately $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have acquired 1,346 shares of company stock valued at $78,185 in the last ninety days. 1.11% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Tiger Global Management LLC grew its position in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after acquiring an additional 1,839,600 shares in the last quarter. Van ECK Associates Corp raised its stake 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 worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $495,163,000. T. Rowe Price Investment Management Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% during 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 acquiring an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP purchased a new position in shares of Taiwan Semiconductor Manufacturing during the third quarter worth approximately $360,443,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.