DA Davidson Reaffirms Buy Rating for Taiwan Semiconductor Manufacturing (NYSE:TSM)

Taiwan Semiconductor Manufacturing (NYSE:TSM)‘s stock had its “buy” rating reaffirmed by investment analysts at DA Davidson in a report issued on Friday, Benzinga reports. They currently have a $500.00 target price on the semiconductor company’s stock. DA Davidson’s price target points to a potential upside of 20.96% from the stock’s previous close.

A number of other analysts have also recently commented on TSM. Sanford C. Bernstein lifted their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Susquehanna lifted their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. Finally, Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM traded down $8.88 during trading hours on Friday, reaching $413.37. 10,978,499 shares of the company traded hands, compared to its average volume of 13,067,630. The stock has a market capitalization of $2.14 trillion, a P/E ratio of 29.77, a P/E/G ratio of 0.89 and a beta of 1.37. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. Taiwan Semiconductor Manufacturing has a 12-month low of $266.82 and a 12-month high of $487.47. The business has a fifty day moving average price of $434.85 and a 200-day moving average price of $417.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. The firm had revenue of $46.87 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Equities analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.60 EPS for the current fiscal year.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The stock was purchased at an average price of $74.39 per share, for a total transaction of $223,170.00. Following the purchase, the vice president directly owned 4,000 shares in the company, valued at approximately $297,560. This trade represents a 300.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Shyue-Shyh Lin purchased 2,000 shares of the business’s stock in a transaction that occurred on Sunday, July 19th. The stock was acquired at an average price of $71.71 per share, with a total value of $143,420.00. Following the purchase, the vice president owned 28,269 shares in the company, valued at $2,027,169.99. This represents a 7.61% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 16,043 shares of company stock worth $1,185,746 in the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the business. Cedar Mountain Advisors LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares in the last quarter. Markowski Investments purchased a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $33,000. Evolution Wealth Management Inc. increased its stake in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after buying an additional 67 shares in the last quarter. Financial Freedom LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth approximately $32,000. Finally, Lam Group Inc. purchased a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth approximately $34,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported its sixth consecutive record-profit quarter. Third-quarter net income rose approximately 69% year over year to about NT$763 billion, while revenue increased roughly 51%; both figures exceeded analyst expectations. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: Management guided for fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the approximately $48.8 billion consensus estimate, reinforcing that demand for advanced AI and high-performance-computing chips remains strong. TSMC earnings report
• Positive Sentiment: Investors received additional long-term growth signals: 2026 revenue is expected to rise about 44%, while annual 2-nanometer capacity is expected to more than double in 2027. Advanced technologies already represent about 79% of wafer revenue. Three key takeaways for long-term investors
• Neutral Sentiment: TSMC is reportedly exploring additional Texas capacity, including potential participation in Elon Musk’s proposed “Terafab” complex. Separately, Taiwan is backing industrial parks for Nvidia suppliers, which could expand the U.S. semiconductor ecosystem but may increase execution and geographic-expansion demands. TSMC and Elon Musk’s Terafab talks
• Negative Sentiment: The main concern is spending: TSMC may invest as much as $64 billion in capital expenditures this year. Although the investment supports future AI capacity, investors worry about oversupply, execution risk, and whether customer demand will justify the enormous buildout. TSMC’s $64 billion spending plan
• Negative Sentiment: TSM is also being pressured by a wider chip-sector selloff tied to inflation, higher interest rates, and concerns about debt financing for AI infrastructure companies such as CoreWeave and Oracle. Strong results were therefore insufficient to overcome profit-taking and fears that the AI trade may be overextended. Chip stocks tumble on AI investment worries

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 largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.