Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.9% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price dropped 1.9% during trading on Wednesday . The stock traded as low as $339.34 and last traded at $339.5570. Approximately 12,473,613 shares traded hands during trading, a decline of 11% from the average daily volume of 13,999,359 shares. The stock had previously closed at $345.98.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: New industry data highlights TSMC’s dominance — the company is said to control about 72% of the global chip foundry market and benefits directly from record AI-driven wafer demand, supporting a strong revenue outlook for 2026. TSMC Claims 72% Of Global Chip Market As AI Demand Hits Record Highs
• Positive Sentiment: Heavy call-option buying and unusual options volume suggest bullish positioning by traders expecting upside or a relief bounce. This buying pressure can amplify near-term upside if sentiment turns positive. Investors Buy High Volume of Call Options on Taiwan Semiconductor Manufacturing (NYSE:TSM)
• Positive Sentiment: Several commentary pieces frame the recent ~13% correction as a buying opportunity — analysts and retail-focused outlets argue the dip improves the risk/reward given TSMC’s long-term AI exposure. TSMC Stock Looks Like a Table-Pounding Gift After That 13% Correction
• Neutral Sentiment: Options strategies like selling puts are being recommended as an income approach to buy TSM at lower effective prices — this signals investor interest but also caution about near-term volatility. TSM Stock: Why Selling Puts Is The Win-Win Play
• Neutral Sentiment: TSMC briefly outpaced market gains in recent sessions, underlining that momentum can still reassert itself despite the pullback. TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
• Negative Sentiment: Comparisons with NVIDIA and other AI-focused names emphasize faster growth and sharper data-center demand for rivals, prompting some investors to rotate capital away from TSM toward higher-growth AI chip plays. NVDA vs. TSM: Which Semiconductor Powerhouse Offers More Upside?
• Negative Sentiment: Geopolitical risks (supply-chain exposure, a possible helium shortage) and competition from new in-house AI chips (e.g., Microsoft’s Maia 200) are recurring concerns that can pressure multiple suppliers including TSMC. Nvidia, TSMC Are Dangerously Exposed To A Hidden War Risk
• Negative Sentiment: Ongoing valuation debate — some coverage flags a relatively rich P/E (and rapid run-up) meaning further downside can occur if AI demand disappoints or multiple compression continues. Taiwan Semiconductor Manufacturing (NYSE:TSM) Share Performance And Valuation Debate

Analysts Set New Price Targets

TSM has been the subject of several recent analyst reports. TD Cowen upped their price target on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a research note on Friday, January 16th. Argus raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Dbs Bank upgraded shares of Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a research note on Friday, January 23rd. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Four investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The firm’s 50 day moving average price is $347.73 and its 200-day moving average price is $307.99. The firm has a market cap of $1.76 trillion, a price-to-earnings ratio of 31.88, a P/E/G ratio of 0.93 and a beta of 1.29. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share for the quarter. The firm had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Hilton Head Capital Partners LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $27,000. Stephens Consulting LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 82.0% during the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 41 shares during the period. Strategic Advocates LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares in the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $29,000. 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.