Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.5% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded down 4.5% during trading on Wednesday . The company traded as low as $407.70 and last traded at $408.5110. 13,034,385 shares changed hands during mid-day trading, a decline of 6% from the average session volume of 13,838,985 shares. The stock had previously closed at $427.92.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Several reports highlighted TSMC as a major beneficiary of Big Tech’s massive AI capital spending, with articles calling it an underappreciated winner in the AI infrastructure buildout. 2 Unsung Heroes of Big Tech’s $725 Billion AI Capex Spend
• Positive Sentiment: Nvidia CEO Jensen Huang’s comments that AI is “insanely profitable” for TSMC added to confidence that the company remains central to the AI chip supply chain. Nvidia CEO Jensen Huang Calls AI ‘Insanely Profitable’ for TSMC. How to Play TSM Stock Here.
• Positive Sentiment: New coverage said TSMC is a top semiconductor stock for 2026, while other pieces noted Harvard Management’s large stake, both reinforcing institutional confidence in the stock. Harvard University’s Favorite AI Stock Pick: Taiwan Semiconductor (TSM)
• Neutral Sentiment: TSMC’s CEO said chip supply is likely to stay tight for years because AI demand is still outpacing capacity, which is positive for pricing power but also underscores how stretched supply remains. Taiwan Semiconductor (TSM) Sees AI Chip Demand Outpacing Supply
• Negative Sentiment: At the same time, CEO C.C. Wei highlighted talent shortages and ongoing concerns about water availability in Taiwan, which could limit production growth and add operational risk. TSMC boss frets about shortages of talent, water in Taiwan
• Negative Sentiment: One report also said Google may look to Samsung for additional AI chip capacity because of a TSMC capacity crunch, suggesting some customers are seeking alternatives. GOOGL Explores Samsung Partnership For Next-Gen AI Chip Amid TSMC Capacity Crunch: Report

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on TSM. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Needham & Company LLC increased their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Barclays increased their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 22nd. Finally, Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

The firm has a market cap of $2.19 trillion, a price-to-earnings ratio of 35.19, a PEG ratio of 1.19 and a beta of 1.38. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The company’s 50-day moving average price is $395.41 and its 200-day moving average price is $352.20.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The firm had revenue of $30.65 billion for the quarter. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.71%.

Insider Buying and Selling

In other news, VP Bor-Zen Tien bought 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the purchase, the vice president owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. The trade was a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have purchased 3,496 shares of company stock worth $229,407 over the last 90 days. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Large investors have recently made changes to their positions in the company. LFG Wealth Partners LLC increased its stake in Taiwan Semiconductor Manufacturing by 1.2% in the first quarter. LFG Wealth Partners LLC now owns 10,519 shares of the semiconductor company’s stock valued at $3,555,000 after purchasing an additional 122 shares during the last quarter. Rathbones Group PLC increased its stake in Taiwan Semiconductor Manufacturing by 0.7% in the first quarter. Rathbones Group PLC now owns 1,026,057 shares of the semiconductor company’s stock valued at $346,756,000 after purchasing an additional 7,428 shares during the last quarter. Positano Wealth Management Ltd increased its stake in Taiwan Semiconductor Manufacturing by 8.0% in the first quarter. Positano Wealth Management Ltd now owns 20,182 shares of the semiconductor company’s stock valued at $6,821,000 after purchasing an additional 1,492 shares during the last quarter. Parallel Advisors LLC increased its stake in Taiwan Semiconductor Manufacturing by 13.4% in the first quarter. Parallel Advisors LLC now owns 44,242 shares of the semiconductor company’s stock valued at $14,952,000 after purchasing an additional 5,241 shares during the last quarter. Finally, First Nebraska Trust Co purchased a new position in Taiwan Semiconductor Manufacturing in the first quarter valued at approximately $1,211,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.