Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.4% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 4.4% on Tuesday . The company traded as low as $428.11 and last traded at $432.0490. Approximately 14,814,078 shares changed hands during trading, an increase of 6% from the average daily volume of 13,973,233 shares. The stock had previously closed at $451.79.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts and market commentary continue to highlight TSMC as a core AI winner, with strong demand for advanced nodes, full utilization at 3nm, and pricing power supporting margin expansion and higher price targets. Silicon Starvation: Amazon Feasts on Legacy GPUs
• Positive Sentiment: Recent articles also point to a credit upgrade and continued institutional confidence, reinforcing the view that TSMC’s long-term earnings outlook remains strong despite the stock’s elevated valuation. Taiwan Semiconductor Manufacturing (TSM) Wins A Credit Upgrade, Is The Rally Already Priced In?
• Positive Sentiment: TSMC is being cited as one of the main beneficiaries of AI infrastructure spending, including rising hyperscaler chip orders and broader forecasts for semiconductor sales growth. AI Powering Semiconductor Sales: 4 Stocks to Boost Your Portfolio
• Neutral Sentiment: Several pieces framed TSMC as part of a broader AI-stock debate, including comparisons with Alphabet and commentary on whether the stock’s big rally has already priced in much of the upside. Alphabet Vs. Taiwan Semiconductor: What Is The Better Stock To Buy Right Now
• Neutral Sentiment: A marketwide AI-chip pullback was blamed largely on a South Korea-led liquidity and margin cascade, suggesting the pressure on TSMC may be driven by forced selling rather than any change in chip demand. The AI Chip Sell-Off Looks Scary, But the Real Story May Be Liquidity (TSM)
• Neutral Sentiment: Some coverage noted that Goldman Sachs turned cautious on TSMC, which may add to valuation concerns even as the company’s operating outlook remains strong. Goldman Sachs turns its back on major semiconductor stock Taiwan Semiconductor Manufacturing

Wall Street Analysts Forecast Growth

TSM has been the subject of several recent analyst reports. Bank of America increased their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. DA Davidson reiterated a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The stock has a market capitalization of $2.24 trillion, a price-to-earnings ratio of 35.94, a price-to-earnings-growth ratio of 1.09 and a beta of 1.36. The stock has a 50-day moving average of $421.78 and a 200 day moving average of $369.10.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Wednesday, April 15th. The semiconductor company reported $3.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.31 by $0.18. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The firm had revenue of $35.49 billion during the quarter, compared to analysts’ expectations of $35.47 billion. During the same quarter in the previous year, the company earned $2.12 earnings per share. The business’s revenue for the quarter was up 40.6% on a year-over-year basis. On average, analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business 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 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 yield of 1.0%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 25.12%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan acquired 1,000 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was bought at an average price of $79.19 per share, with a total value of $79,190.00. Following the transaction, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. The trade was a 25.00% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Bor-Zen Tien bought 1,000 shares of the company’s stock in a transaction dated Monday, June 29th. The stock was purchased at an average cost of $76.64 per share, for a total transaction of $76,640.00. Following the completion of the acquisition, the vice president owned 12,051 shares in the company, valued at $923,588.64. This trade represents a 9.05% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 5,496 shares of company stock worth $404,567 in the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently bought and sold shares of the business. Cedar Mountain Advisors LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 30 shares during the last quarter. Quattro Advisors LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at $25,000. Hilton Head Capital Partners LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at $27,000. Stephens Consulting LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 41 shares during the period. Finally, Evolution Wealth Management Inc. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after buying an additional 67 shares during 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.