Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.9% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 2.9% on Monday . The stock traded as low as $420.29 and last traded at $421.4330. 14,180,300 shares changed hands during mid-day trading, an increase of 2% from the average session volume of 13,904,271 shares. The stock had previously closed at $434.11.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record June revenue and a strong second-quarter sales beat, signaling that AI chip demand remains robust and supporting expectations for another record earnings quarter. TSMC reports record June revenue, second quarter sales top guidance
• Positive Sentiment: Analysts and market commentary say TSMC’s pricing power may be improving, with potential price increases on advanced chips adding to margin upside. Wedbush Delivers an Urgent Message for TSMC Stock Investors
• Neutral Sentiment: Investors are watching the July 16 earnings report closely, with traders expecting a large move but also looking for guidance that can justify further gains. Here’s How Much TSMC Stock Is Expected to Move After Earnings
• Negative Sentiment: Some articles warn that strong results may not be enough if AI demand from key customers cools or if valuation concerns keep the stock from re-rating higher. TSMC stock braces for record earnings, but this Nvidia risk could derail the rally

Analyst Upgrades and Downgrades

A number of research firms have commented on TSM. Needham & Company LLC raised their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Bank of America increased their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Moderate Buy” and a consensus target price of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market capitalization of $2.18 trillion, a P/E ratio of 34.99, a price-to-earnings-growth ratio of 1.06 and a beta of 1.36. The business has a 50 day moving average of $427.17 and a 200 day moving average of $376.20. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Wednesday, April 15th. The semiconductor company reported $3.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.31 by $0.18. The business had revenue of $35.49 billion for the quarter, compared to the consensus estimate of $35.47 billion. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The company’s revenue was up 40.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.12 EPS. On average, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.44 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

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

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average price of $79.19 per share, with a total value of $79,190.00. Following the acquisition, the vice president owned 5,000 shares in the company, valued at approximately $395,950. The trade was a 25.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction that occurred on 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 sale, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have acquired a total of 6,857 shares of company stock valued at $512,334 over the last 90 days. 1.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Twin City Private Wealth LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% during the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after purchasing an additional 25 shares during the period. Graves Light Lenhart Wealth Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 3.4% in the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after purchasing an additional 25 shares during the period. OFS Enterprise LLC increased its stake in Taiwan Semiconductor Manufacturing by 4.0% in the second quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock valued at $312,000 after purchasing an additional 25 shares during the last quarter. Wealthcare Capital Partners LLC increased its stake in Taiwan Semiconductor Manufacturing by 1.0% in the second quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock valued at $1,244,000 after purchasing an additional 25 shares during the last quarter. Finally, Elser Financial Planning Inc lifted its position in Taiwan Semiconductor Manufacturing by 2.4% during the second quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company’s stock worth $516,000 after buying an additional 25 shares during the period. 16.51% of the stock is 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.