Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.1% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded down 2.1% during mid-day trading on Thursday . The stock traded as low as $429.50 and last traded at $434.7080. 18,332,566 shares were traded during trading, an increase of 31% from the average daily volume of 13,991,765 shares. The stock had previously closed at $444.23.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is expanding its 3-nanometer capacity across Taiwan, Arizona, and Japan, signaling that demand tied to AI and advanced chips remains robust and could support longer-term revenue growth. TSMC Expands 3 Nanometer Capacity Across Taiwan Arizona And Japan
• Positive Sentiment: Analysts remain broadly optimistic on TSMC, with recent coverage pointing to continued confidence in its leadership position in advanced manufacturing and AI infrastructure. Wall Street Bulls Look Optimistic About TSMC (TSM): Should You Buy?
• Neutral Sentiment: Commentary suggests the AI semiconductor rally is moving into a more selective phase, where profitability and capacity discipline will matter more than broad momentum — a backdrop that could favor TSMC, but also make investors more cautious. Top Invesco Analyst: The AI Trade That “Lifted All Boats” Is Over Now Profitability Decides Winners As “Capacity Will Catch Up”
• Neutral Sentiment: TSMC Arizona reported a treasurer change effective July 1, a routine management update with little immediate operating impact. TSMC Arizona Announces Treasurer Change Effective July 1, 2026
• Negative Sentiment: TSMC has also been caught in a broader chip-sector pullback, with Asian semiconductor shares sold off and investors rotating out of the recent AI trade. Asian stocks slide on chip sell-off as markets await US jobs data
• Negative Sentiment: Recent coverage also notes that TSMC shares had fallen more sharply than the broader market, reflecting valuation worries after a strong run higher. TSMC (TSM) Falls More Steeply Than Broader Market: What Investors Need to Know

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on TSM shares. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Bank of America lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 22nd. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Finally, Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the company a “positive” rating in a research report on Monday, June 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The business’s 50-day moving average price is $421.78 and its 200-day moving average price is $368.53. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.25 trillion, a PE ratio of 36.17, a P/E/G ratio of 1.09 and a beta of 1.36.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The business had revenue of $30.65 billion for the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. This is an increase 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 is currently 25.12%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president directly owned 2,495,165 shares in the company, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Bor-Zen Tien bought 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 5,496 shares of company stock worth $404,567. 1.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cedar Mountain Advisors LLC grew its stake in shares of 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 purchasing an additional 30 shares during the period. Quattro Advisors LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $27,000. Stephens Consulting LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after buying an additional 41 shares in the last quarter. Finally, Evolution Wealth Management Inc. boosted its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after buying an additional 67 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.