Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded down 2.7% during trading on Thursday . The stock traded as low as $403.50 and last traded at $408.3580. 24,773,512 shares were traded during mid-day trading, an increase of 77% from the average session volume of 14,027,875 shares. The stock had previously closed at $419.48.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

Analyst Upgrades and Downgrades

TSM has been the subject of a number of analyst reports. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday. Finally, Needham & Company LLC upped their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Three investment 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 MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $490.00.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market cap of $2.06 trillion, a P/E ratio of 28.69, a P/E/G ratio of 1.02 and a beta of 1.36. 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 business has a fifty day simple moving average of $426.79 and a two-hundred day simple moving average of $377.94.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.51 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

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

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the firm’s stock in a transaction on Monday, June 29th. The shares were acquired at an average cost of $76.64 per share, for a total transaction of $76,640.00. Following the completion of the transaction, the vice president owned 12,051 shares of the company’s stock, valued at approximately $923,588.64. The trade was a 9.05% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction dated Monday, June 22nd. The shares were acquired at an average price of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders acquired 6,857 shares of company stock valued at $512,334. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Cedar Mountain Advisors LLC raised its stake in 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 period. Quattro Advisors LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $27,000. Stephens Consulting LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 82.0% during the 4th 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. raised its position 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 valued at $31,000 after purchasing an additional 67 shares during the period. Hedge funds and other 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.