Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.2% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) rose 1.2% during mid-day trading on Tuesday. The stock traded as high as $428.21 and last traded at $425.0950. Approximately 12,312,570 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 13,085,495 shares. The stock had previously closed at $420.22.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Moody’s upgraded TSMC’s issuer rating to Aa2 from Aa3 and raised its outlook to stable. The agency cited TSMC’s leading market share, persistent AI demand and strong financial position, potentially lowering borrowing costs and supporting investor confidence. Moody’s upgrades TSMC rating to Aa2
• Positive Sentiment: TSMC was selected alongside Samsung Electronics and SK Hynix for the newly launched Emerging Markets AI Mag 3 ETF. The fund could increase visibility and investor demand for the three semiconductor companies positioned at the center of AI infrastructure. Emerging Markets AI Mag 3 ETF launch
• Positive Sentiment: Company executives increased their TSMC shareholdings in recent regulatory filings. While the purchases are modest relative to the company’s market value, insider buying can be interpreted as a sign of management confidence. TSMC executives boost shareholdings
• Positive Sentiment: Recent coverage continues to highlight stronger-than-expected quarterly results, higher guidance and robust AI-related chip demand. Analysts and commentators see potential for substantial earnings growth through 2030, though long-term price targets remain speculative. TSMC long-term growth forecast
• Neutral Sentiment: Industry reports project rapid growth in the FinFET chip market through 2030, supported by AI and data-center demand. This represents a favorable addressable-market trend, but it does not guarantee that TSMC will capture all of the projected growth. FinFET technology market report
• Negative Sentiment: A broader sell-off in chip and technology stocks has highlighted investor concerns about AI financing, elevated valuations and the possibility of a market shakeout. TSMC’s strong fundamentals may provide support, but the stock remains exposed to sector-wide volatility. Chip stocks market shakeout

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on TSM shares. Bank of America increased their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. DA Davidson reissued a “buy” rating and issued a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target for the company. Finally, Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Three research 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. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Trading Up 1.6%

The stock has a market cap of $2.24 trillion, a PE ratio of 27.79, a P/E/G ratio of 0.86 and a beta of 1.37. The business’s fifty day moving average is $434.84 and its 200 day moving average is $419.64. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The company had revenue of $46.87 billion during the quarter. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.03 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is currently 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan acquired 1,000 shares of the company’s stock in a transaction that occurred 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 purchase, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares of the company’s stock, valued at $1,026,566.06. The trade was a 7.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 8,043 shares of company stock valued at $598,956 over the last ninety days. 1.11% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Legacy Financial Group Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 12.4% during the 3rd quarter. Legacy Financial Group Inc. now owns 606 shares of the semiconductor company’s stock valued at $276,000 after buying an additional 67 shares during the last quarter. NBT Bank N.A. bought a new position in Taiwan Semiconductor Manufacturing in the third quarter worth about $1,291,000. Root Financial Partners LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 22.5% in the third quarter. Root Financial Partners LLC now owns 3,198 shares of the semiconductor company’s stock worth $1,459,000 after acquiring an additional 587 shares during the last quarter. Investment House LLC boosted its stake in Taiwan Semiconductor Manufacturing by 18.5% in the third quarter. Investment House LLC now owns 3,391 shares of the semiconductor company’s stock valued at $1,547,000 after acquiring an additional 530 shares during the period. Finally, FARMERS & MERCHANTS TRUST Co OF LONG BEACH boosted its stake in Taiwan Semiconductor Manufacturing by 6.1% in the third quarter. FARMERS & MERCHANTS TRUST Co OF LONG BEACH now owns 1,067 shares of the semiconductor company’s stock valued at $487,000 after acquiring an additional 61 shares during the period. Hedge funds and other institutional investors own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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.