Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Gap Up – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $272.63, but opened at $282.39. Taiwan Semiconductor Manufacturing shares last traded at $284.87, with a volume of 3,419,282 shares trading hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on TSM. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, August 31st. Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the stock a “positive” rating in a research report on Monday, July 14th. Needham & Company LLC reissued a “buy” rating and issued a $270.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Thursday, July 17th. Finally, Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 16th. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $286.67.

Taiwan Semiconductor Manufacturing Trading Up 3.3%

The stock has a market cap of $1.46 trillion, a price-to-earnings ratio of 32.13, a P/E/G ratio of 1.26 and a beta of 1.23. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.15 and a current ratio of 2.37. The business has a 50-day simple moving average of $242.83 and a two-hundred day simple moving average of $206.76.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The company had revenue of $30.07 billion during the quarter, compared to the consensus estimate of $28.50 billion. During the same quarter in the prior year, the firm posted $1.48 EPS. The firm’s revenue for the quarter was up 44.4% compared to the same quarter last year. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Investors of record on Thursday, December 11th will be paid a $0.8348 dividend. This represents a $3.34 annualized dividend and a yield of 1.2%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.65. The ex-dividend date of this dividend is Thursday, December 11th. Taiwan Semiconductor Manufacturing’s payout ratio is 29.42%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in TSM. City Holding Co. increased its holdings in Taiwan Semiconductor Manufacturing by 238.0% in the first quarter. City Holding Co. now owns 169 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 119 shares in the last quarter. 1248 Management LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth $28,000. Signature Resources Capital Management LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 138.8% in the 1st quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company’s stock worth $32,000 after purchasing an additional 111 shares in the last quarter. Resources Management Corp CT ADV bought a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth $32,000. Finally, Graybill Wealth Management LTD. bought a new position in shares of Taiwan Semiconductor Manufacturing in the 1st quarter worth $33,000. 16.51% of the stock is currently owned by institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.