Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.7% Following Dividend Announcement

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 1.7% during mid-day trading on Wednesday after the company announced a dividend. The company traded as high as $433.28 and last traded at $429.03. 9,473,455 shares were traded during mid-day trading, a decline of 32% from the average session volume of 13,985,294 shares. The stock had previously closed at $422.06.

The newly announced dividend which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 21.43%.

Analysts Set New Price Targets

Several brokerages recently issued reports on TSM. Sanford C. Bernstein lifted their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research note on Tuesday. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. DA Davidson lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, July 28th. Finally, Susquehanna upped their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $524.25.

Taiwan Semiconductor Manufacturing Stock Up 1.7%

The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.13. The company has a fifty day moving average price of $426.20 and a 200-day moving average price of $388.73. The stock has a market capitalization of $2.23 trillion, a P/E ratio of 30.95, a PEG ratio of 0.96 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%. As a group, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current fiscal year.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record July sales reaffirm the AI boom. TSMC reported July revenue of approximately NT$467.58 billion, up 44.7% year over year and 5.6% from June. Management expects 2026 revenue growth of slightly more than 40% in U.S.-dollar terms, supporting continued demand for advanced AI, high-performance-computing and accelerator chips. TSMC’s 44.7% Sales Surge Signals the AI Boom Is Still Alive
• Positive Sentiment: Analysts see additional upside. Bernstein raised its TSMC price target to $554 from $430 and maintained an outperform rating, citing a potentially significant CPU opportunity alongside AI growth. The broader analyst consensus remains Buy, with an average target near $496. Bernstein raises TSMC price target
• Positive Sentiment: TSMC is expanding its strategic customer and manufacturing base. TSMC and Sony agreed to form a roughly $4.69 billion Japanese joint venture for next-generation smartphone image sensors. Sony will control the venture, while TSMC will invest about $1.77 billion; production is targeted for 2029. The project diversifies TSMC beyond AI and helps reduce geographic concentration risk. TSMC to invest in joint venture with Sony for image sensors
• Positive Sentiment: Potential Microsoft demand adds to the outlook. Microsoft’s planned in-house Maia AI-chip expansion could generate substantial future orders for TSMC, reinforcing its position as a leading supplier to hyperscale computing companies.
• Neutral Sentiment: Capital spending is rising sharply. TSMC increased its 2026 capital-spending guidance to $60 billion-$64 billion. The investment is necessary to expand advanced capacity, but it raises execution, depreciation and return-on-investment risks if AI demand slows.
• Neutral Sentiment: TSMC declared a quarterly dividend of $1.0854 per share, representing an annualized yield of about 1%. The payout offers modest shareholder support but is unlikely to be a major short-term catalyst.
• Negative Sentiment: Valuation and longer-term uncertainty remain concerns. Analysts warn that TSMC’s 2028-29 revenue growth and returns on AI investment must still be proven. Additional U.S. restrictions on advanced-chip shipments to China could also increase compliance costs and limit market access.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin acquired 2,000 shares of the company’s stock in a transaction on Sunday, July 19th. The stock was acquired at an average cost of $71.71 per share, with a total value of $143,420.00. Following the purchase, the vice president directly owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. This represents a 7.61% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of the firm’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 completion of the transaction, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This represents a 25.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 18,312 shares of company stock valued at $1,347,058. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently modified their holdings of the stock. Tiger Global Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Van ECK Associates Corp raised its position in Taiwan Semiconductor Manufacturing by 11.1% during the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth $495,163,000. T. Rowe Price Investment Management Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 168.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after buying an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP purchased a new position in shares of Taiwan Semiconductor Manufacturing during the third quarter valued at $360,443,000. 16.51% of the stock is owned by institutional investors.

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.