Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.6% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price dropped 2.6% during mid-day trading on Friday . The stock traded as low as $329.10 and last traded at $330.69. Approximately 11,953,843 shares changed hands during trading, a decline of 22% from the average daily volume of 15,248,748 shares. The stock had previously closed at $339.55.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analysts and sector writeups highlight TSMC as a core beneficiary of the AI boom — Zacks groups TSMC with NVIDIA as AI chip winners, underscoring sustained data‑center demand that supports TSMC’s revenue and margin outlook. Read More.
• Positive Sentiment: NVIDIA’s CEO publicly backing TSMC’s global expansion and noting rising AI memory needs reinforces TSMC’s strategic role in next‑generation AI supply — a direct demand cue for TSMC’s advanced-node capacity. Read More.
• Positive Sentiment: NVIDIA winning approval for a $105M Taiwan hub and deepening local ties further cements the NVIDIA–TSMC ecosystem, implying more fab capacity demand and partnership stability. Read More.
• Positive Sentiment: Broker commentary and upgrades (Goldman/Morgan Stanley mentions, margin expansion notes) and coverage pieces emphasize TSMC’s improving profitability and leadership position — supportive for medium‑term analyst estimates and investor positioning. Read More.
• Positive Sentiment: Broader investor guides and AI stock roundups continue to list TSMC as a core AI‑infrastructure play, reinforcing demand narrative among long‑term investors. Read More.
• Neutral Sentiment: Zacks notes elevated investor attention on TSMC — this raises near‑term liquidity and volatility but doesn’t change the company’s underlying fundamentals. Read More.
• Neutral Sentiment: Coverage roundups (MSN/Wall Street take) and interim data writeups summarize the company’s strong results and higher capex but add little incremental surprise; useful for sentiment but not clearly catalytic. Read More. Read More.
• Negative Sentiment: Large leveraged liquidations in crypto markets (Bitcoin) drove risk‑off flows that contributed to broader market volatility and intraday weakness in chips and tech, a likely headwind for TSMC’s short‑term price action. Read More.

Wall Street Analyst Weigh In

TSM has been the subject of several recent analyst reports. Argus upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. TD Cowen increased their price target on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a report on Friday, January 16th. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a report on Friday, January 16th. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Finally, UBS Group set a $330.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Two equities research 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, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average price target of $381.67.

Taiwan Semiconductor Manufacturing Stock Performance

The stock’s 50-day moving average price is $308.61 and its 200-day moving average price is $280.04. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $1.71 trillion, a P/E ratio of 31.05, a P/E/G ratio of 0.98 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The firm had revenue of $32.50 billion for the quarter. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. The ex-dividend date is Tuesday, March 17th. This represents a $3.87 dividend on an annualized basis and a yield of 1.2%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s payout ratio is presently 28.64%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after purchasing an additional 1,892 shares during the period. Truist Financial Corp increased its position in Taiwan Semiconductor Manufacturing by 2.1% in the 2nd quarter. Truist Financial Corp now owns 422,069 shares of the semiconductor company’s stock valued at $95,594,000 after acquiring an additional 8,795 shares during the period. Trilogy Capital Inc. bought a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $204,000. SOA Wealth Advisors LLC. boosted its position in Taiwan Semiconductor Manufacturing by 3.3% during the 2nd quarter. SOA Wealth Advisors LLC. now owns 2,160 shares of the semiconductor company’s stock worth $489,000 after acquiring an additional 68 shares during the period. Finally, Precision Wealth Strategies LLC acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth $439,000. 16.51% of the stock is currently owned by institutional investors.

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.