Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.9% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was down 1.9% on Thursday. The stock traded as low as $428.43 and last traded at $431.1820. Approximately 8,257,932 shares were traded during mid-day trading, a decline of 36% from the average session volume of 12,995,379 shares. The stock had previously closed at $439.51.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC continues to benefit from its position as the world’s leading advanced-chip foundry. Its revenue has consistently exceeded Applied Materials’ over the past eight quarters and has shown a steadier upward trend, supporting the view that demand for leading-edge processors remains strong. Applied Materials vs. Taiwan Semiconductor Manufacturing
• Positive Sentiment: Long-term investor articles continue to identify TSMC as a potential multibagger because of its exposure to AI accelerators, advanced manufacturing and sustained customer demand. The thesis assumes that earnings and cash flow can continue compounding through 2030. What a $10,000 Investment in TSMC Stock Will Be Worth by 2030
• Positive Sentiment: Bell Global Equities Fund continues to hold TSMC, indicating that an institutional investor views the company’s scale, technology leadership and AI exposure as attractive despite the recent volatility. Why Bell Global Equities Fund Continues to Favor TSMC
• Positive Sentiment: Taiwan’s semiconductor industry supports a government review of potentially restarting nuclear power plants. Improved electricity availability and reliability could help address one of TSMC’s key operational risks as chip-fabrication capacity expands. Taiwan Semiconductor Industry Group Backs Nuclear Power Review
• Neutral Sentiment: TSMC remains one of the most closely watched semiconductor stocks, reflecting strong investor interest but also heightened sensitivity to earnings expectations, valuation and news affecting the AI supply chain. TSMC Is Attracting Investor Attention
• Negative Sentiment: Investors are increasingly considering whether AI spending could slow in 2027. A deceleration would pressure the semiconductor sector, although TSMC may hold up better than companies with less differentiated positions because it controls a critical manufacturing bottleneck. If AI Spending Slows in 2027
• Negative Sentiment: Bearish commentary argues that TSMC is spending heavily to defend its lead, raising concerns about capital intensity, execution and whether future returns will justify the investment. Those concerns may be contributing to pressure on the shares after their strong run. TSMC: Spending Its Lead to Keep It

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b)” rating in a research report on Wednesday, October 21st. Stifel Nicolaus assumed coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 target price for the company. Sanford C. Bernstein boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. Needham & Company LLC upped their price objective on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Finally, Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. Three 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’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The business has a fifty day simple moving average of $435.00 and a two-hundred day simple moving average of $399.49. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a market cap of $2.10 trillion, a PE ratio of 26.07, a P/E/G ratio of 0.88 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The firm had revenue of $46.72 billion during the quarter, compared to analyst estimates of $45.67 billion. During the same quarter in the prior year, the company earned $2.92 EPS. The business’s revenue was up 41.2% compared to the same quarter last year. Research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 22.27%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were purchased at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the acquisition, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. This represents a 7.66% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Lipen Yuan bought 1,000 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the acquisition, the vice president owned 6,000 shares in the company, valued at approximately $447,000. This represents a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 7,043 shares of company stock valued at $530,986 in the last three months. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Fiduciary Advisors Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 200.0% during the third quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 40 shares during the last quarter. Evolution Wealth Management Inc. grew its position in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the last quarter. 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 valued at $31,000 after acquiring an additional 30 shares in the last quarter. Financial Freedom LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the first quarter worth about $32,000. Finally, Markowski Investments bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $33,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.