Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.8% Higher – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded up 1.8% during trading on Friday . The company traded as high as $324.77 and last traded at $323.7070. 12,284,838 shares traded hands during trading, a decline of 15% from the average session volume of 14,406,006 shares. The stock had previously closed at $318.01.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Company reported stronger-than-expected December/Q4 revenue and a large full‑year 2025 revenue gain, driven by AI chip demand and big customers such as Nvidia — supports upside to near‑term results and sentiment. TSMC posts Q4 revenue of $1046.08 billion, above forecasts
• Positive Sentiment: TSMC reported a roughly 31.6% surge in 2025 revenue (despite a December dip) reinforcing that AI-related capacity is filling quickly — a clear demand signal for advanced-node services. TSMC Posts 31.6% Surge in 2025 Revenue Despite December Dip
• Positive Sentiment: TSMC has started 2nm production — a material milestone that expands its lead in cutting‑edge nodes and supports long‑term pricing power for AI chips. Taiwan Semiconductor Started 2nm Chip Production. Time to Buy?
• Positive Sentiment: Several sell‑side firms and analysts remain bullish, raising price targets and reiterating buy ratings — supports investor demand and fund inflows. Taiwan Semiconductor (TSM) Stock: Wall Street Raises Price Targets as Shares Hit Record Highs
• Neutral Sentiment: TSMC’s full earnings release and guidance are upcoming (earnings season focus around Jan. 15); monthly updates have been positive but investors will watch guidance for 2026 cadence. Dear Taiwan Semi Stock Fans, Mark Your Calendars for January 15
• Negative Sentiment: Risk: a Seeking Alpha note flags memory (HBM/DRAM/NAND) inflation — constrained HBM supply could spike DRAM/NAND prices, push up handset prices and cool smartphone demand (about 30% of TSMC revenue), potentially weakening 2026 growth and guidance. TSMC Q4 Preview: Bullish, But Memory Inflation Could Break The 2026 Growth Story
• Negative Sentiment: Market commentary raises the question of an AI‑driven valuation premium and whether current revenue gains already price in peak AI spending — watch margins, capex cadence and customer order patterns for signs of a re‑rating. TSMC Stock Rises After Bumper Sales. What That Says About a Potential AI Bubble.

Analysts Set New Price Targets

A number of research analysts recently issued reports on TSM shares. UBS Group set a $330.00 price target on Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Needham & Company LLC reiterated a “buy” rating and set a $360.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, October 27th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. Finally, Itau BBA Securities began coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, October 7th. They issued an “outperform” rating for the company. Eight research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and a consensus price target of $355.00.

Taiwan Semiconductor Manufacturing Trading Up 1.8%

The firm has a market cap of $1.68 trillion, a PE ratio of 33.20, a PEG ratio of 0.91 and a beta of 1.29. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The business has a 50-day moving average price of $295.09 and a two-hundred day moving average price of $268.95.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%. Analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. The ex-dividend date is Tuesday, March 17th. This represents a $3.87 annualized dividend and a dividend yield of 1.2%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s payout ratio is presently 31.28%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently bought and sold shares of TSM. Westfuller Advisors LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 2.2% during the third quarter. Westfuller Advisors LLC now owns 1,551 shares of the semiconductor company’s stock valued at $434,000 after acquiring an additional 34 shares in the last quarter. Sovereign Financial Group Inc. boosted its stake in Taiwan Semiconductor Manufacturing by 4.5% during the 4th quarter. Sovereign Financial Group Inc. now owns 793 shares of the semiconductor company’s stock valued at $241,000 after purchasing an additional 34 shares during the last quarter. BankPlus Wealth Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 1.6% in the 3rd quarter. BankPlus Wealth Management LLC now owns 2,291 shares of the semiconductor company’s stock worth $640,000 after purchasing an additional 35 shares in the last quarter. Bank of Jackson Hole Trust increased its holdings in shares of Taiwan Semiconductor Manufacturing by 7.5% in the 3rd quarter. Bank of Jackson Hole Trust now owns 500 shares of the semiconductor company’s stock worth $140,000 after purchasing an additional 35 shares in the last quarter. Finally, New Millennium Group LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.9% in the third quarter. New Millennium Group LLC now owns 1,248 shares of the semiconductor company’s stock worth $349,000 after purchasing an additional 35 shares during the last quarter. Hedge funds and other 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.