Taiwan Semiconductor Manufacturing (NYSE:TSM) Sees Large Volume Increase on Strong Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) saw strong trading volume on Thursday following a stronger than expected earnings report. 16,730,506 shares were traded during mid-day trading, an increase of 25% from the previous session’s volume of 13,375,440 shares.The stock last traded at $346.4650 and had previously closed at $327.11.

The semiconductor company reported $14.32 EPS for the quarter. The company had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 17th will be paid a dividend of $0.9678 per share. This represents a $3.87 dividend on an annualized basis and a dividend yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s payout ratio is 31.28%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Q4 beat and strong guidance — TSMC reported a sizable EPS and revenue beat for Q4 (EPS $3.14 vs. $2.82 est.; revenue ≈ $33.1B) and issued Q1 revenue guidance above consensus ($34.6B–$35.8B vs. ~$32.5B estimate), which markets interpret as confirmation of durable AI server demand and accelerates the sector rally. TSMC Q4 profit jumps 35% to record, beats expectations
• Positive Sentiment: Margins, advanced nodes and capex point to continued outperformance — Gross margin expanded (reported at ~62.3% in some notes) with advanced process nodes (≤7nm) now ~77% of wafer revenue and 3nm at ~28%; management unveiled record 2026 CAPEX ($52–$56B) to sustain leadership — bullish for long-term profit growth and pricing power. TSMC Q4 analysis: margin expansion and record CAPEX
• Positive Sentiment: Analyst upgrades and higher price targets — Banks and research shops raised forecasts and price targets (e.g., Needham lifted its target, and other firms like JPMorgan updated expectations), which supports more demand for the shares from institutionals and momentum flows. TSM price target raised at Needham
• Positive Sentiment: Sector ripple effects — TSMC’s results reignited AI optimism across chip suppliers and equipment makers (ASML hit record highs), amplifying ETF and semiconductor-stock inflows that lift TSM as the supply-chain epicenter. ASML tops $500B as TSMC results spark semis rally
• Neutral Sentiment: Conference call and transcript available — Investors can review the earnings call slide deck and transcript for customer-level color, geography detail, and timing on capacity expansions; useful for verifying sustainability of the beat. TSMC press release / slide deck
• Negative Sentiment: Capacity limits and customer allocation risk — Several reports note TSMC is close to capacity on advanced nodes and has signaled constraints (including selective allocation to some customers), which could cap near-term upside and allow competitors or packaging partners to capture marginal demand. TSMC Says ‘No More’ To Nvidia (capacity concerns)

Analyst Ratings Changes

Several equities research analysts recently weighed in on TSM shares. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a “positive” rating in a research report on Friday, October 10th. Finally, UBS Group set a $330.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Eight equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $365.00.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in TSM. Westfuller Advisors LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 2.2% during the 3rd quarter. Westfuller Advisors LLC now owns 1,551 shares of the semiconductor company’s stock valued at $434,000 after purchasing an additional 34 shares in the last quarter. Sovereign Financial Group Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 4.5% in the fourth quarter. Sovereign Financial Group Inc. now owns 793 shares of the semiconductor company’s stock worth $241,000 after buying an additional 34 shares during the period. BankPlus Wealth Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 1.6% in the third quarter. BankPlus Wealth Management LLC now owns 2,291 shares of the semiconductor company’s stock worth $640,000 after buying an additional 35 shares during the period. Bank of Jackson Hole Trust boosted its position in Taiwan Semiconductor Manufacturing by 7.5% during the 3rd quarter. Bank of Jackson Hole Trust now owns 500 shares of the semiconductor company’s stock valued at $140,000 after acquiring an additional 35 shares in the last quarter. Finally, New Millennium Group LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 2.9% during the 3rd quarter. New Millennium Group LLC now owns 1,248 shares of the semiconductor company’s stock worth $349,000 after acquiring an additional 35 shares during the period. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a market cap of $1.80 trillion, a P/E ratio of 35.67, a price-to-earnings-growth ratio of 0.79 and a beta of 1.29. The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.47 and a current ratio of 2.69. The firm has a 50-day moving average price of $297.51 and a 200-day moving average price of $272.29.

Taiwan Semiconductor Manufacturing Company Profile

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.