Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Climb 6.2% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) rose 6.2% during trading on Friday. The company traded as high as $380.72 and last traded at $375.1530. 23,717,514 shares traded hands during trading, an increase of 80% from the average session volume of 13,205,001 shares. The stock had previously closed at $353.10.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Taiwan’s tighter short-selling rules and a planned $15 billion stabilization fund helped lift TSM shares in premarket trading after a sharp decline in Asian chip stocks. The move may ease immediate selling pressure, though it does not resolve the causes of the sector selloff. Article: TSMC Surges as Taiwan Restricts Short Selling
• Positive Sentiment: Bernstein raised its price target to $600 and reiterated an “outperform” rating, pointing to potential upside from current levels. TSMC’s role manufacturing advanced chips for both Nvidia and AMD also gives it exposure to multiple AI-chip leaders. Article: Bernstein Raises TSMC Price Target Article: TSMC Makes Chips for Nvidia and AMD
• Neutral Sentiment: Nvidia reportedly wants TSMC to make advanced memory chips, and TSMC is considering entering the memory business. This could open a new growth opportunity, but the reports describe a possibility rather than a confirmed plan. Article: Nvidia Reportedly Wants TSMC to Make Advanced Memory Chips
• Negative Sentiment: The rebound comes amid a broad AI and semiconductor selloff, including steep losses in Asian chip stocks. Investor concerns about AI spending expectations and elevated valuations could continue to drive volatility despite TSMC’s underlying demand opportunities. Article: Wall Street’s AI Crash Hits Asia

Analyst Upgrades and Downgrades

TSM has been the subject of several recent research reports. Sanford C. Bernstein boosted their target price on shares of Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday. Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday. Susquehanna lifted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. TD Cowen boosted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Finally, Needham & Company LLC increased their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a research note on Thursday, October 15th. Three equities research 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 company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average target price of $533.89.

Taiwan Semiconductor Manufacturing Stock Up 6.2%

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 capitalization of $1.95 trillion, a PE ratio of 24.14, a P/E/G ratio of 0.80 and a beta of 1.44. The stock’s fifty day simple moving average is $432.74 and its 200-day simple moving average is $400.53.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted 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 net margin of 51.51% and a return on equity of 42.84%. 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 business posted $2.92 EPS. The business’s revenue was up 41.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 22.27%.

Insider Buying and Selling

In other news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction on Sunday, November 1st. The stock was acquired at an average cost of $71.49 per share, with a total value of $71,490.00. Following the completion of the transaction, the vice president directly owned 8,000 shares of the company’s stock, valued at $571,920. This represents a 14.29% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have bought a total of 5,428 shares of company stock valued at $411,021 over the last 90 days. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently modified their holdings of the business. Fiduciary Advisors Inc. boosted its position in Taiwan Semiconductor Manufacturing by 200.0% during the third quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 40 shares during the last quarter. Cedar Mountain Advisors LLC grew its holdings 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. Financial Freedom LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the 1st quarter worth about $32,000. Markowski Investments bought a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth about $33,000. Finally, Heritage Family Offices LLP bought a new position in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter worth about $37,000. 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 semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.