Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.7% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 1.7% during trading on Tuesday . The stock traded as high as $341.25 and last traded at $338.2820. 11,226,859 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 15,735,213 shares. The stock had previously closed at $332.71.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Nvidia is on track to become TSMC’s largest customer this year, signaling rising, high-margin AI chip demand that should boost fab utilization and revenue visibility for TSM. Nvidia set to supplant Apple as TSMC’s top customer Nvidia becomes TSMC’s largest customer (TipRanks)
• Positive Sentiment: Microsoft’s new Maia 200 accelerator is manufactured on TSMC’s advanced 3nm process — a validation of TSMC’s technology leadership and a source of steady wafer demand from a hyperscaler focused on cost-efficient inference. Microsoft’s Maia 200: The Profit Engine AI Needs (TSM)
• Positive Sentiment: Taiwan’s president has signaled support for more semiconductor investment in Arizona, reinforcing U.S. fab expansion momentum that benefits TSMC’s CapEx plans and geopolitical diversification. Taiwan president supports more semiconductor investment in Arizona
• Neutral Sentiment: Several valuation and forecast pieces examine how recent share gains affect TSMC’s multiples and price targets — useful for assessing upside vs. risk but not new operational news. A Look At Taiwan Semiconductor Manufacturing’s Valuation TSM Price Prediction and Forecast (247WallSt)
• Neutral Sentiment: Industry coverage comparing semiconductor-equipment suppliers (ASML, AMAT, LRCX) highlights the broader capex cycle that supports TSMC’s order book but is more relevant to equipment suppliers than TSM itself. Which Semiconductor Equipment Stock Has More Upside in 2026?
• Neutral Sentiment: Backtests and investor-opinion pieces (e.g., performance if you’d invested a year ago) reinforce investor enthusiasm but have limited incremental impact on fundamentals. If You’d Invested $10,000 in Taiwan Semiconductor Stock a Year Ago
• Negative Sentiment: Analysts and op-eds warn that TSMC’s premium valuation may be disconnected from near-term earnings risk — a reason for profit-taking or greater volatility despite strong demand momentum. TSMC: Powers America’s AI Boom – Yet, The Valuation Doesn’t Make Sense

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Susquehanna increased their price objective on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a “positive” rating in a research report on Friday, October 10th. Itau BBA Securities initiated coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They set an “outperform” rating for the company. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a research note on Friday. Finally, Argus upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.47 and a current ratio of 2.69. The business’s fifty day simple moving average is $304.98 and its 200 day simple moving average is $278.43. The stock has a market cap of $1.75 trillion, a price-to-earnings ratio of 31.76, a price-to-earnings-growth ratio of 0.95 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced 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 return on equity of 36.18% and a net margin of 45.13%.The business had revenue of $32.50 billion for the quarter. Research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be issued a dividend of $0.9678 per share. The ex-dividend date is Tuesday, March 17th. This represents a $3.87 annualized dividend and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 28.64%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently made changes to their positions in the stock. Stephens Consulting LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares during the last quarter. Heartwood Wealth Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing in the third quarter worth about $32,000. Resources Management Corp CT ADV bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter valued at about $32,000. Mid American Wealth Advisory Group Inc. acquired a new stake in Taiwan Semiconductor Manufacturing during the second quarter valued at approximately $33,000. Finally, Maseco LLP acquired a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $35,000. Institutional investors and hedge funds 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.