Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 4.7% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was down 4.7% during mid-day trading on Wednesday . The stock traded as low as $372.72 and last traded at $373.8350. 21,256,787 shares changed hands during mid-day trading, an increase of 50% from the average session volume of 14,132,255 shares. The stock had previously closed at $392.31.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Microsoft’s continued cloud growth and data-center investment helped revive confidence in AI-chip demand, lifting TSMC and other semiconductor shares. TSMC Stock Jumps as Microsoft Revives AI-Chip Trade
• Positive Sentiment: Lam Research issued a substantially stronger AI-driven revenue and earnings outlook, offering a favorable read-through for chip-equipment spending and TSMC’s capacity utilization. Lam Research AI Forecast
• Positive Sentiment: Erste Group raised its TSMC EPS estimates to $16.69 for FY2026 and $21.25 for FY2027, above its prior forecasts and close to or above consensus expectations. TSMC Earnings Estimates
• Positive Sentiment: Vice President Bor-Zen Tien purchased 1,000 shares for approximately $67,970, increasing his reported holdings by 25%. The insider buying may modestly reinforce confidence in the company’s outlook. Bor-Zen Tien Purchases TSMC Shares
• Positive Sentiment: TSMC’s expansion of advanced AI-chip packaging, including its Arizona partnership with Amkor, could strengthen its position in the U.S. AI supply chain. TSMC Advanced Packaging Expansion
• Neutral Sentiment: Analysts currently favor TSMC over ASML on valuation and sentiment, but both remain dependent on sustained AI capital spending. ASML Versus TSMC
• Negative Sentiment: Samsung’s proposed Broadcom partnership could create a stronger vertically integrated competitor in AI foundry and packaging, challenging TSMC’s market leadership. Samsung Broadcom Foundry Deal
• Negative Sentiment: Investors continue to monitor China-related equipment restrictions and whether AI spending can remain durable after the recent technology-sector selloff. TSMC China and AI Spending Concerns

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a research note on Monday. Finally, Bank of America raised their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $496.25.

Taiwan Semiconductor Manufacturing Stock Up 0.7%

The stock’s fifty day moving average price is $427.14 and its 200 day moving average price is $384.13. The stock has a market cap of $2.11 trillion, a P/E ratio of 29.24, a price-to-earnings-growth ratio of 0.86 and a beta of 1.36. The company has a current ratio of 2.46, a quick ratio of 2.31 and a debt-to-equity ratio of 0.13.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 21.43%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Shyue-Shyh Lin acquired 1,000 shares of the business’s stock in a transaction dated Tuesday, July 21st. The stock was purchased at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the acquisition, the vice president owned 30,269 shares of the company’s stock, valued at $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Lipen Yuan acquired 1,000 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was purchased at an average price of $79.19 per share, with a total value of $79,190.00. Following the completion of the acquisition, 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. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 15,857 shares of company stock worth $1,167,094. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds have recently bought and sold shares of TSM. Tiger Global Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $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% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after purchasing an additional 1,750,824 shares during the period. Life Cycle Investment Partners Ltd bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth $495,163,000. T. Rowe Price Investment Management Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after purchasing an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP purchased a new stake in Taiwan Semiconductor Manufacturing during the third quarter valued at about $360,443,000. 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.