Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.7% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was down 1.7% during trading on Thursday . The stock traded as low as $424.05 and last traded at $428.0920. Approximately 8,318,176 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 13,431,174 shares. The stock had previously closed at $435.36.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported August 2026 consolidated revenue of NT$514.81 billion (approximately $16.35 billion), up 53.3% year over year and 10.1% from July. The record result marked a fourth consecutive monthly increase and signals continued demand from AI-chip, cloud-computing and advanced semiconductor customers. Taiwan Semiconductor’s August Revenue Rose 53% To Record High
• Positive Sentiment: Revenue growth accelerated well above the 39.3% increase recorded during the first eight months of the year, suggesting that customer orders and production volumes remain strong heading into the second half of 2026. Capacity constraints and customer backlogs could support pricing and utilization. World’s largest contract chipmaker TSMC sees August revenue surge over 53% to record high
• Positive Sentiment: TSMC and ASML are collaborating on large-format 12-inch photomasks for High-NA EUV, targeting improved fab productivity and lower chipmaking costs. TSMC plans to bring High-NA EUV into high-volume advanced-node production around 2030, supporting its long-term technology leadership. TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV
• Neutral Sentiment: Erste Group raised its FY2027 EPS estimate modestly to $21.72 from $21.61, reinforcing constructive expectations but offering limited incremental impact. Recent purchases by TSMC’s CEO and other executives provide an additional confidence signal, though the transactions were relatively small.
• Negative Sentiment: TSM is trading lower alongside the broader technology and semiconductor sector. Rising wholesale inflation, Treasury yields and expectations surrounding next week’s Federal Reserve meeting are pressuring growth-stock valuations. Apple, TSMC, SpaceX, Cooper Cos., Macy’s, and More Stocks That Explain Today’s Market
• Negative Sentiment: Record TSMC sales have not revived investor enthusiasm for the AI trade; AMD and other chip stocks are also falling. Investors may be taking profits or questioning whether elevated AI spending and semiconductor valuations can persist, even as TSMC’s underlying demand remains robust. TSMC Posts Record Sales. Why AMD and Other Chip Stocks Are Falling

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on TSM. TD Cowen raised their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Susquehanna lifted their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 26th. Finally, Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Stock Performance

The business has a fifty day simple moving average of $419.15 and a two-hundred day simple moving average of $399.70. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a market cap of $2.22 trillion, a P/E ratio of 30.89, a P/E/G ratio of 1.00 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The firm had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was bought at an average cost of $74.50 per share, with a total value of $74,500.00. Following the completion of the purchase, the vice president owned 6,000 shares in the company, valued at approximately $447,000. This represents a 20.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Shyue-Shyh Lin purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, July 19th. The stock was acquired at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the transaction, the vice president directly owned 28,269 shares of the company’s stock, valued at $2,027,169.99. The trade was a 7.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 21,106 shares of company stock worth $1,571,733 in the last three months. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Large investors have recently made changes to their positions in the stock. Fisher Asset Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after acquiring an additional 313,773 shares during the period. Van ECK Associates Corp grew its stake in Taiwan Semiconductor Manufacturing by 11.1% in 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 purchasing an additional 1,750,824 shares in the last quarter. Bank of America Corp DE grew its stake in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after purchasing an additional 966,926 shares in the last quarter. Coatue Management LLC increased its holdings in Taiwan Semiconductor Manufacturing by 6.9% during the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after purchasing an additional 556,988 shares during the period. Finally, Janus Henderson Group PLC raised its position in Taiwan Semiconductor Manufacturing by 7.7% during the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after purchasing an additional 594,780 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.