Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 2.2% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price traded up 2.2% on Tuesday . The stock traded as high as $416.49 and last traded at $413.50. 9,995,251 shares changed hands during trading, a decline of 28% from the average session volume of 13,866,591 shares. The stock had previously closed at $404.52.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is being highlighted as a major winner from the AI buildout, with demand for advanced chips and packaging capacity helping drive the stock’s momentum. Article Title
• Positive Sentiment: Several reports say Taiwan’s stock market has overtaken India in value largely because of TSMC’s rally, underscoring how dominant the company has become in the global semiconductor trade. Article Title
• Positive Sentiment: Analysts and market commentary continue to frame TSMC as a key long-term AI compounder, with management reportedly guiding for strong 2026 revenue growth driven by 3nm and 2nm demand. Article Title
• Neutral Sentiment: TSMC filed a routine April portfolio update showing a shift toward fixed income, but the filing did not indicate any change in capital structure or core operations. Article Title
• Neutral Sentiment: Huawei’s claim that it can narrow the chipmaking gap with TSMC by 2031 adds competitive noise, but the technology remains years away and does not change TSMC’s near-term leadership. Article Title
• Negative Sentiment: Investor attention was also drawn to insider selling, including a report that a TSMC executive sold nearly $14 million in shares, which can create some sentiment pressure even if it does not change fundamentals. Article Title
• Negative Sentiment: Huawei’s announced chipmaking breakthrough also raises longer-term competitive concerns for Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), as China pushes harder toward semiconductor self-sufficiency. Article Title

Analysts Set New Price Targets

Several analysts have commented on TSM shares. Barclays raised their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a report on Wednesday, April 22nd. Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Needham & Company LLC boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Finally, Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

The company has a current ratio of 2.49, a quick ratio of 2.32 and a debt-to-equity ratio of 0.16. The company has a 50 day simple moving average of $371.93 and a 200 day simple moving average of $339.28. The stock has a market cap of $2.14 trillion, a P/E ratio of 34.40, a PEG ratio of 1.18 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The company had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. Sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 24.71%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The stock was bought at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the purchase, the vice president directly owned 11,051 shares in the company, valued at approximately $772,575.41. This represents a 22.10% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have acquired a total of 3,346 shares of company stock worth $218,005 over the last three months. Insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Shannon River Fund Management LLC acquired a new position in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at $2,430,000. Vanguard Personalized Indexing Management LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 9.4% during the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock worth $28,470,000 after purchasing an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 28.6% in the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock worth $10,394,000 after purchasing an additional 8,284 shares during the period. Meridian Wealth Management LLC raised its stake in Taiwan Semiconductor Manufacturing by 27.9% in the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock valued at $20,049,000 after purchasing an additional 14,406 shares in the last quarter. Finally, Hollencrest Capital Management raised its stake in Taiwan Semiconductor Manufacturing by 125.3% in the third quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock valued at $1,457,000 after purchasing an additional 2,901 shares in the last quarter. Institutional investors and hedge funds 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.