Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 2.7% during mid-day trading on Wednesday . The stock traded as low as $318.54 and last traded at $318.7010. Approximately 11,690,180 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 15,812,262 shares. The stock had previously closed at $327.43.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Company reported stronger-than-expected December/Q4 revenue and a large full‑year 2025 revenue gain, driven by AI chip demand and big customers such as Nvidia — supports upside to near‑term results and sentiment. TSMC posts Q4 revenue of $1046.08 billion, above forecasts
• Positive Sentiment: TSMC reported a roughly 31.6% surge in 2025 revenue (despite a December dip) reinforcing that AI-related capacity is filling quickly — a clear demand signal for advanced-node services. TSMC Posts 31.6% Surge in 2025 Revenue Despite December Dip
• Positive Sentiment: TSMC has started 2nm production — a material milestone that expands its lead in cutting‑edge nodes and supports long‑term pricing power for AI chips. Taiwan Semiconductor Started 2nm Chip Production. Time to Buy?
• Positive Sentiment: Several sell‑side firms and analysts remain bullish, raising price targets and reiterating buy ratings — supports investor demand and fund inflows. Taiwan Semiconductor (TSM) Stock: Wall Street Raises Price Targets as Shares Hit Record Highs
• Neutral Sentiment: TSMC’s full earnings release and guidance are upcoming (earnings season focus around Jan. 15); monthly updates have been positive but investors will watch guidance for 2026 cadence. Dear Taiwan Semi Stock Fans, Mark Your Calendars for January 15
• Negative Sentiment: Risk: a Seeking Alpha note flags memory (HBM/DRAM/NAND) inflation — constrained HBM supply could spike DRAM/NAND prices, push up handset prices and cool smartphone demand (about 30% of TSMC revenue), potentially weakening 2026 growth and guidance. TSMC Q4 Preview: Bullish, But Memory Inflation Could Break The 2026 Growth Story
• Negative Sentiment: Market commentary raises the question of an AI‑driven valuation premium and whether current revenue gains already price in peak AI spending — watch margins, capex cadence and customer order patterns for signs of a re‑rating. TSMC Stock Rises After Bumper Sales. What That Says About a Potential AI Bubble.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a “positive” rating in a report on Friday, October 10th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, December 29th. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research note on Friday, October 17th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday. Eight research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $355.00.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The business’s 50 day moving average price is $295.09 and its 200 day moving average price is $268.95. The stock has a market capitalization of $1.68 trillion, a P/E ratio of 33.20, a price-to-earnings-growth ratio of 0.91 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%. Sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be issued a $0.9678 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.74%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. First Heartland Consultants Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 4.9% during the 4th quarter. First Heartland Consultants Inc. now owns 1,974 shares of the semiconductor company’s stock valued at $600,000 after purchasing an additional 92 shares during the period. Constitution Capital LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth approximately $213,000. Silverlake Wealth Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.7% in the fourth quarter. Silverlake Wealth Management LLC now owns 2,097 shares of the semiconductor company’s stock worth $637,000 after buying an additional 55 shares during the last quarter. Overbrook Management Corp grew its position in Taiwan Semiconductor Manufacturing by 5.2% during the fourth quarter. Overbrook Management Corp now owns 65,225 shares of the semiconductor company’s stock valued at $19,821,000 after buying an additional 3,209 shares during the period. Finally, Capital Asset Advisory Services LLC increased its holdings in Taiwan Semiconductor Manufacturing by 3.1% during the fourth quarter. Capital Asset Advisory Services LLC now owns 1,915 shares of the semiconductor company’s stock valued at $627,000 after buying an additional 57 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.