Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3.4% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 3.4% during mid-day trading on Tuesday . The company traded as low as $425.20 and last traded at $426.34. 10,743,962 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 13,733,669 shares. The stock had previously closed at $441.40.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Investor commentary remains constructive on TSMC, with articles highlighting bullish Wall Street views, the company’s strong role in the AI supply chain, and its recent quarterly strength, which supports the long-term growth case for the stock.
• Positive Sentiment: TSMC insider buying added to confidence, as VP Lipen Yuan purchased 1,000 shares, a signal often viewed as management optimism about future performance.
• Positive Sentiment: News that TSMC is helping drive advanced packaging expansion in the U.S. also underscores continued customer demand and strategic investment tied to AI and high-performance chips. Amkor rises after Taiwan Semi deal for advanced packaging in US
• Neutral Sentiment: Several stories focused on TSMC being a trending stock and a favorite among hedge fund and research commentary, but these were largely sentiment pieces rather than fresh operational updates.
• Negative Sentiment: CEO C.C. Wei’s comments about water and talent shortages introduced a potential risk to future capacity expansion, which may be pressuring sentiment around the stock.
• Negative Sentiment: Talk of a 25% capex budget hike also suggests TSMC is spending heavily to keep up with demand, which can raise concerns about near-term margins and capital intensity.

Analyst Upgrades and Downgrades

TSM has been the topic of several research analyst reports. DA Davidson reissued a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Finally, Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Trading Down 3.4%

The firm has a market cap of $2.21 trillion, a price-to-earnings ratio of 35.47, a P/E/G ratio of 1.24 and a beta of 1.39. The firm’s 50-day moving average is $399.06 and its 200-day moving average is $354.27. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. The business 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 36.81%. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This is a boost 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 yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 25.12%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 2,000 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was acquired at an average price of $69.91 per share, for a total transaction of $139,820.00. Following the purchase, the vice president owned 11,051 shares of the company’s stock, valued at $772,575.41. This trade represents a 22.10% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders acquired 4,496 shares of company stock worth $304,667. 1.11% of the stock is owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently made changes to their positions in TSM. Brighton Jones LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after acquiring an additional 1,892 shares in the last quarter. Gamco Investors INC. ET AL bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth $701,000. Bank of Nova Scotia grew its stake in shares of Taiwan Semiconductor Manufacturing by 12.8% in the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after acquiring an additional 1,784 shares in the last quarter. FWL Investment Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 26.5% in the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth $270,000. 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.