Taiwan Semiconductor Manufacturing (NYSE:TSM) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) from a hold rating to a strong-buy rating in a research note released on Tuesday morning,Zacks.com reports.

Several other research analysts have also recently weighed in on the company. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. Needham & Company LLC raised their price target on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a “buy” rating in a research note on Thursday, January 15th. Itau BBA Securities started coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, October 7th. They issued an “outperform” rating on the stock. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $381.67.

Taiwan Semiconductor Manufacturing Stock Down 3.0%

Shares of TSM stock opened at $325.65 on Tuesday. Taiwan Semiconductor Manufacturing has a 12-month low of $134.25 and a 12-month high of $351.33. The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The firm has a fifty day moving average of $312.58 and a 200-day moving average of $283.01. The company has a market capitalization of $1.69 trillion, a price-to-earnings ratio of 30.58, a P/E/G ratio of 0.94 and a beta of 1.31.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. This represents a $3.87 annualized dividend and a yield of 1.2%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 23.57%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TSM. Stephens Consulting LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 41 shares during the last quarter. Ares Financial Consulting LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $29,000. Maseco LLP bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $35,000. Heartwood Wealth Advisors LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at $32,000. Finally, Westend Capital Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 476.2% during the fourth quarter. Westend Capital Management LLC now owns 121 shares of the semiconductor company’s stock worth $37,000 after purchasing an additional 100 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC plans mass production of 3‑nanometre chips at its Kumamoto, Japan fab with an estimated $17 billion investment — a major, long‑term capacity commitment that strengthens TSMC’s position on advanced nodes, deepens ties in Japan, and supports future revenue from high‑end AI and HPC customers. TSMC plans 3‑nanometre chip production in Japan with $17 billion investment, Yomiuri reports
• Positive Sentiment: An analyst price target was raised ~17.7% to $360.38, signaling upgraded street expectations for TSMC’s earnings/valuation trajectory and providing direct buy-side ammunition. Price target increased by 17.68% to 360.38
• Positive Sentiment: Multiple industry/market commentators and screens are bullish: Zacks added TSM to its Rank #1 (Strong Buy) and momentum lists, highlighting continued positive analyst momentum and technical interest. Best Momentum Stocks to Buy for February 4th New Strong Buy Stocks for February 4th
• Positive Sentiment: Seeking Alpha commentary frames TSMC as a primary beneficiary of the AI boom — reinforcing thesis that demand for leading‑edge nodes (for GPUs/AI accelerators) should underpin revenue and pricing power over coming years. Taiwan Semiconductor: Winner Of The AI Boom As The Critical Foundry Supplier The Future Of AI Stocks? TSMC Commentary Suggests AI Megatrend
• Neutral Sentiment: An opinion piece compares TSMC and Broadcom and suggests investors may choose one exposure over the other — useful for portfolio allocation decisions but not new company-specific fundamentals. Taiwan Semiconductor or Broadcom? You Should Only Own One of Them
• Neutral Sentiment: Technical coverage: a Benzinga piece notes a recent bullish trading signal that preceded an intraday close higher — suggests some technical momentum among traders but does not alter the fundamental outlook. TSM Stock Closes Higher After Key Trading Signal

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.