Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Receives $524.25 Average PT from Analysts

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) has earned an average rating of “Buy” from the sixteen analysts that are presently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating, eleven have given a buy rating and three have issued a strong buy rating on the company. The average 1-year price objective among analysts that have covered the stock in the last year is $524.25.

A number of equities analysts recently commented on TSM shares. Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. DA Davidson boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a report on Friday, July 17th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. TD Cowen raised their target price on shares of 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 lifted their price target on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC raised its expected 2026 capital expenditures to $60 billion-$64 billion and said it plans to increase dividend payments. The spending is intended to expand capacity for artificial intelligence, high-performance computing, and 5G applications, signaling management’s confidence that semiconductor demand will remain strong. TSMC Commits Higher CapEx in 2026 While Raising Dividend Payouts
• Positive Sentiment: Wall Street’s generally bullish view continues to support TSMC’s investment case. Analysts point to its leadership in advanced-node manufacturing, stronger expected growth, and an attractive valuation relative to some competing foundries. Is It Worth Investing in TSMC Based on Wall Street’s Bullish Views?
• Positive Sentiment: Vice President Lipen Yuan disclosed purchases totaling 1,350 shares, increasing his direct holdings by roughly 20%. The insider buying may be interpreted as a vote of confidence in TSMC’s future, although the dollar value is small relative to the company’s market capitalization. TSMC Insider Trading Activity
• Neutral Sentiment: Reports highlight the expanding AI investment cycle and possible futures tied to GPU and AI-compute pricing. These developments could improve visibility for leading chip manufacturers such as TSMC, but they are not direct changes to the company’s earnings or operations. U.S. Markets Prepare for AI Compute Derivatives
• Negative Sentiment: Capacity constraints in advanced-chip manufacturing remain a potential near-term risk. Tight supply supports pricing, but production bottlenecks could limit how quickly TSMC converts AI demand into revenue and may increase execution and capital-spending risks. What Could TSMC Capacity Strains Mean for AI Demand?
• Negative Sentiment: TSMC trades at a premium to estimated intrinsic value in some valuation models, leaving the stock vulnerable to a pullback if AI growth expectations, margins, or expansion plans disappoint. TSMC Trades Above GF Value as Chip Capacity Tightens

Insiders Place Their Bets

In related news, VP Lipen Yuan acquired 1,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was purchased at an average cost of $74.50 per share, with a total value of $74,500.00. Following the acquisition, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. The trade was a 20.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Bor-Zen Tien bought 3,000 shares of the business’s stock in a transaction dated Tuesday, July 21st. The shares were bought at an average price of $74.39 per share, with a total value of $223,170.00. Following the completion of the transaction, the vice president owned 4,000 shares in the company, valued at approximately $297,560. This trade represents a 300.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 17,662 shares of company stock worth $1,307,491 in the last 90 days. Company insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of TSM. Fisher Asset Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 1.8% in the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after buying an additional 313,773 shares in the last quarter. Van ECK Associates Corp boosted its position in shares of 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 worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Bank of America Corp DE increased its stake in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock valued at $4,832,708,000 after acquiring an additional 966,926 shares during the last quarter. Jennison Associates LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after acquiring an additional 802,757 shares during the last quarter. Finally, Coatue Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.9% in the fourth quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock valued at $2,622,426,000 after acquiring an additional 556,988 shares during the last quarter. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE TSM opened at $418.58 on Wednesday. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The firm has a market cap of $2.17 trillion, a price-to-earnings ratio of 30.20, a P/E/G ratio of 0.95 and a beta of 1.38. The stock’s fifty day moving average price is $425.67 and its two-hundred day moving average price is $393.23. Taiwan Semiconductor Manufacturing has a one year low of $225.63 and a one year high of $479.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, equities analysts forecast that Taiwan Semiconductor Manufacturing will post 16.44 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders 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 yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 21.43%.

Taiwan Semiconductor Manufacturing Company Profile

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.