Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 3.3% – Here’s What Happened

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded down 3.3% on Monday . The stock traded as low as $416.01 and last traded at $418.9440. Approximately 14,058,583 shares changed hands during trading, an increase of 5% from the average session volume of 13,418,645 shares. The stock had previously closed at $433.24.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC’s August revenue reportedly reached a monthly record, increasing 53% year over year. The result reinforces expectations that demand for AI accelerators and advanced chips remains strong. Amazon and 2 Other AI Stocks to Buy With $5,000
• Positive Sentiment: Analysts continue to view TSM as a wide-moat semiconductor company with durable competitive advantages and favorable long-term demand, while brokerages maintain an average “Buy” recommendation. Buy These 5 Top-Ranked Wide Moat Stocks to Strengthen Your Portfolio Taiwan Semiconductor Manufacturing Receives Average Recommendation of Buy
• Positive Sentiment: TSMC’s Open Innovation Platform ecosystem continues to expand, with GS Microelectronics U.S. joining its North American Value Chain Alliance. The partnership could support additional design and ASIC activity on TSMC’s platform. GSME Joined TSMC OIP Value Chain Alliance in North America
• Neutral Sentiment: Industry reports highlighted advanced 3-nanometer production, 2-nanometer designs and 3D packaging capabilities from Alchip, developments that underscore the broader AI-chip ecosystem but do not directly change TSMC’s financial outlook. Alchip Technologies Showcases Advanced ASIC Design and Packaging
• Neutral Sentiment: Fireworks AI’s discussion of specialized AI models and Jensen Huang’s comparison of the company to the “TSMC of AI factories” provide positive industry context, but have no direct near-term earnings impact for TSM. Fireworks AI and the TSMC of AI Factories
• Negative Sentiment: The main catalyst behind the decline is concern that TSMC’s 2028 process roadmap reaches milestones ahead of the anticipated adoption of High-NA lithography. Investors may be interpreting the differing schedules as a potential technology-transition or execution risk, despite the company’s strong demand outlook. TSMC Falls as Its 2028 Chip Roadmap Precedes High-NA Adoption

Analysts Set New Price Targets

A number of research firms have commented on TSM. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target for the company. DA Davidson boosted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Susquehanna increased their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Finally, Sanford C. Bernstein lifted their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The company has a market cap of $2.17 trillion, a PE ratio of 30.23, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a 50 day moving average of $418.99 and a 200-day moving average of $400.55.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 25.25%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 3,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, July 21st. The stock was bought at an average cost of $74.39 per share, with a total value of $223,170.00. Following the transaction, the vice president owned 4,000 shares of the company’s stock, valued at $297,560. This represents a 300.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Shu-Hua Fang acquired 2,000 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were acquired at an average price of $77.09 per share, with a total value of $154,180.00. Following the completion of the purchase, the senior vice president owned 8,206 shares in the company, valued at approximately $632,600.54. This trade represents a 32.23% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 20,106 shares of company stock worth $1,496,473 in the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TSM. Fisher Asset Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 1.8% in 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 buying an additional 313,773 shares during the last quarter. Janus Henderson Group PLC raised its position in Taiwan Semiconductor Manufacturing by 7.7% during the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after acquiring an additional 594,780 shares in the last quarter. Franklin Resources Inc. raised its position in Taiwan Semiconductor Manufacturing by 8.8% during the fourth quarter. Franklin Resources Inc. now owns 7,513,453 shares of the semiconductor company’s stock valued at $2,283,263,000 after acquiring an additional 605,256 shares in the last quarter. Tiger Global Management LLC lifted its holdings 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 valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the period. Finally, Clearbridge Investments LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 3.3% in the fourth quarter. Clearbridge Investments LLC now owns 4,414,472 shares of the semiconductor company’s stock valued at $1,341,514,000 after acquiring an additional 140,784 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

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.