Taiwan Semiconductor Manufacturing Target of Unusually Large Options Trading (NYSE:TSM)

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was the recipient of some unusual options trading on Thursday. Traders bought 417,290 call options on the stock. This represents an increase of 172% compared to the average daily volume of 153,644 call options.

Taiwan Semiconductor Manufacturing Stock Up 4.6%

Shares of TSM traded up $14.89 during trading hours on Thursday, reaching $342.00. The stock had a trading volume of 42,081,514 shares, compared to its average volume of 9,361,646. The company has a market capitalization of $1.77 trillion, a price-to-earnings ratio of 35.08, a P/E/G ratio of 0.77 and a beta of 1.29. The firm has a 50-day simple moving average of $298.57 and a 200 day simple moving average of $272.77. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. Taiwan Semiconductor Manufacturing has a 12 month low of $134.25 and a 12 month high of $351.33.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. The firm 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%. Equities research analysts predict that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced 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 of this dividend is Tuesday, March 17th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.74%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently bought and sold shares of TSM. Stephens Consulting LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares during the period. Heartwood Wealth Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the third quarter worth $32,000. Resources Management Corp CT ADV bought a new stake in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at $32,000. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $33,000. Finally, First Command Advisory Services Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 174.1% during the 2nd quarter. First Command Advisory Services Inc. now owns 159 shares of the semiconductor company’s stock worth $36,000 after acquiring an additional 101 shares during the period. 16.51% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on TSM shares. Sanford C. Bernstein reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research 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. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. Eight research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $365.00.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Quarterly beat and stronger guidance — TSMC reported Q4 revenue of $33.7B and EPS of $3.14 (well above estimates) and issued 2026 revenue guidance implying ~30% growth, reassuring investors that AI demand remains durable. TSMC’s Strong Guidance Supports the Stock’s Hot Start to 2026
• Positive Sentiment: CapEx lift signals commitment to AI capacity — Management raised 2026 CapEx to roughly $52–56B (midpoint ~$54B) to expand advanced-node capacity (3 nm/2 nm), which investors view as supporting long-term share and margin strength. TSMC Earnings Call: AI Boom Fuels Aggressive Expansion
• Positive Sentiment: Market and peer rally — TSMC’s results triggered a broad chip-sector lift (Nvidia, ASML, equipment makers), reinforcing the AI hardware trade and driving momentum flows into TSM and related names. TSMC Q4 profit jumps 35% — Reuters
• Positive Sentiment: Analyst upside — Several firms raised targets after the print (Needham notably lifted its target), adding buy-side endorsement that amplified the rally. Analyst reactions (coverage)
• Neutral Sentiment: Unusual options activity — Heavy call buying was recorded (large spike vs. average), signaling speculative conviction or hedged bullish positioning that can magnify intraday moves but also add volatility.
• Neutral Sentiment: Big US–Taiwan investment framework — A reported $500B-ish trade/expansion initiative increases U.S. capacity prospects (positive long-term for TSMC’s U.S. builds) but timing and implementation remain multi-year. Taiwan chip deal — Reuters
• Negative Sentiment: Margin & valuation caveats — Some analysts (TD Cowen and others) caution that accelerating CapEx will raise depreciation and overseas scale could dilute gross margins 2–4%; combined with a rich valuation, that argues for caution. Analyst caution — TipRanks
• Negative Sentiment: Geopolitical / tariff risk — Reports about U.S. tariffs on AI chips and global trade frictions create execution risk and potential supply-chain cost exposure. Tariff risk — 247wallst

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.