Taiwan Semiconductor Manufacturing (NYSE:TSM) Reaches New 52-Week High – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) hit a new 52-week high during trading on Monday . The company traded as high as $353.20 and last traded at $357.0850, with a volume of 1398281 shares traded. The stock had previously closed at $348.85.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: January revenue jumped ~37% Y/Y to NT$401.26B, the highest monthly sales on record — clear evidence AI demand is accelerating and supports upside for near-term earnings and pricing power. TSMC Stock Hits Record High as Demand for AI Chips Drives Growth
• Positive Sentiment: TSMC’s board backed large 2026 capex plans plus increased dividend/bonus distributions after strong 2025 results — supports investor confidence and indicates management expects sustained demand. TSMC Board Backs Massive 2026 Capex, Dividend and Bonus Payouts After Strong 2025 Results
• Positive Sentiment: Wholly owned subsidiary TSMC Global cleared steps to raise up to US$30B in capital — strengthens funding flexibility for fabs and capex without diluting the parent. TSMC Subsidiary TSMC Global Clears Path for Capital Increase of Up to US$30 Billion
• Positive Sentiment: U.S. officials are reportedly considering carve-outs from upcoming chip tariffs tied to firms’ U.S. investment commitments — a potential tailwind if TSMC’s U.S. expansion receives preferential treatment. US plans Big Tech carve-out from next wave of chip tariffs
• Neutral Sentiment: TSMC is expanding fabs overseas (e.g., Arizona) but Taiwan policymakers are setting limits on how much capacity moves — this reduces geopolitical risk for customers but may complicate global capacity planning. TSMC (TSM) Expands in Arizona, but Taiwan Draws Limits on U.S. Chip Shift
• Neutral Sentiment: Analysts and outlets are reassessing valuation after the rally — momentum is strong but the stock now trades at premium multiples, so upside depends on execution and margin preservation. Assessing Taiwan Semiconductor Manufacturing’s Valuation After Strong Recent Share Price Gains
• Negative Sentiment: Industry leaders warn TSMC may need to roughly double capacity to meet AI demand — implies years of heavy capex, execution risk and potential supply bottlenecks that could pressure margins or delay deliveries. TSMC Must Double Its Capacity to Meet Massive AI Demand, According to Jensen Huang
• Negative Sentiment: Taiwan’s pushback on a large-scale U.S. shift of chipmaking could keep advanced fabs concentrated in Taiwan — a geopolitical concentration risk investors must price in. ‘Impossible!’: Taiwan slams the brakes on US demands for 40% chip shift

Analysts Set New Price Targets

A number of research analysts recently commented on TSM shares. Weiss Ratings restated a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Sanford C. Bernstein reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Needham & Company LLC lifted their target price on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Finally, Freedom Capital raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Three research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The stock has a fifty day simple moving average of $317.26 and a 200-day simple moving average of $286.39. The company has a market capitalization of $1.88 trillion, a P/E ratio of 33.99, a PEG ratio of 0.99 and a beta of 1.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The business had revenue of $32.50 billion for the quarter. Equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of TSM. Thompson Siegel & Walmsley LLC increased its holdings in Taiwan Semiconductor Manufacturing by 3.6% during the 4th quarter. Thompson Siegel & Walmsley LLC now owns 868 shares of the semiconductor company’s stock valued at $264,000 after purchasing an additional 30 shares in the last quarter. Oak Harvest Investment Services grew its holdings in shares of Taiwan Semiconductor Manufacturing by 2.9% during the fourth quarter. Oak Harvest Investment Services now owns 1,106 shares of the semiconductor company’s stock worth $336,000 after purchasing an additional 31 shares during the last quarter. Falcon Wealth Planning increased its stake in shares of Taiwan Semiconductor Manufacturing by 4.4% in the fourth quarter. Falcon Wealth Planning now owns 780 shares of the semiconductor company’s stock valued at $237,000 after buying an additional 33 shares in the last quarter. Drive Wealth Management LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 0.7% in the fourth quarter. Drive Wealth Management LLC now owns 4,997 shares of the semiconductor company’s stock valued at $1,522,000 after buying an additional 33 shares during the last quarter. Finally, Westfuller Advisors LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 2.2% in the third quarter. Westfuller Advisors LLC now owns 1,551 shares of the semiconductor company’s stock valued at $434,000 after buying an additional 34 shares during the last quarter. 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.