Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.8% – Here’s Why

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 2.8% during mid-day trading on Thursday . The company traded as low as $369.70 and last traded at $376.93. 14,430,736 shares traded hands during mid-day trading, an increase of 2% from the average session volume of 14,123,526 shares. The stock had previously closed at $387.73.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Reported strong quarterly results — TSMC posted $3.11 EPS and $30.65B in revenue, with a 45% net margin and 36% ROE, underscoring very high profitability. Earnings report
• Positive Sentiment: Raised the annual dividend ~28% to at least TWD 23 and guided for ~38% revenue growth in Q1 2026 — a shareholder-friendly move that signals confidence in near-term demand. TSMC Raises Dividend 28%
• Positive Sentiment: Long-term AI exposure — TSMC expects AI chip revenue to grow at roughly a 60% CAGR through 2029, supporting secular growth expectations for advanced-node capacity. TSMC AI chip revenue outlook
• Positive Sentiment: Momentum/market recognition — TSMC recently hit a 52‑week high and crossed a ~$2T market cap as AI-driven chip demand (and deals like the AMD supply agreement) lifted investor sentiment. TSM hits 52-week high
• Neutral Sentiment: Broader flows into international equities (ex-U.S.) are benefiting large Taiwan names like TSM, a structural tailwind but not company-specific news. International ETF flows
• Neutral Sentiment: Analyst and media coverage continues to position TSMC as a core AI play, which supports long-term interest but may keep volatility high around macro/sector events. AI stock recommendations
• Negative Sentiment: Profit-taking and sector volatility — after a strong run and a new 52‑week high, some investors are trimming exposure; chip-sector swings (e.g., ahead of major reports from peers like Nvidia) can pressure TSMC stock. Sector volatility / Nvidia coverage
• Negative Sentiment: Geopolitical and policy risk remains a concern — articles note that stronger revenue and dividends reframe but do not eliminate Taiwan-related and tariff risks that could weigh on sentiment. Geopolitical risk discussion

Analysts Set New Price Targets

TSM has been the subject of several recent analyst reports. Sanford C. Bernstein reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. UBS Group set a $330.00 price objective on Taiwan Semiconductor Manufacturing in a report on Sunday, December 7th. Needham & Company LLC raised their target price on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research note on Thursday, January 15th. Freedom Capital raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Finally, Dbs Bank upgraded shares of Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a report on Friday, January 23rd. Four analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market capitalization of $1.95 trillion, a P/E ratio of 35.39, a P/E/G ratio of 1.08 and a beta of 1.31. The stock has a 50 day simple moving average of $333.85 and a two-hundred day simple moving average of $296.18. The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 EPS 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 $30.65 billion during the quarter. On average, equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.9503 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 23.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently made changes to their positions in TSM. Brighton Jones LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 20.9% during the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after purchasing an additional 1,892 shares in the last quarter. Ignite Planners LLC raised its stake in Taiwan Semiconductor Manufacturing by 4.7% during the second quarter. Ignite Planners LLC now owns 2,610 shares of the semiconductor company’s stock worth $627,000 after acquiring an additional 116 shares in the last quarter. Advisory Alpha LLC bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at approximately $251,000. Clark Asset Management LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $220,000. Finally, Zhang Financial LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at about $211,000. Institutional investors 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.