Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 7.1% Higher – Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were up 7.1% during trading on Thursday . The stock traded as high as $465.22 and last traded at $462.8020. Approximately 25,727,913 shares changed hands during mid-day trading, an increase of 86% from the average session volume of 13,834,016 shares. The stock had previously closed at $432.15.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC signed a 10-year advanced packaging deal with Amkor in Arizona, strengthening its U.S.-based supply chain and supporting long-term advanced chip demand. Taiwan Semiconductor Manufacturing (NYSE:TSM) And Amkor Sign 10 Year Arizona Packaging Deal
• Positive Sentiment: Several articles framed TSMC as a top momentum and AI stock pick, reinforcing bullish investor sentiment around its growth runway and leadership in cutting-edge foundry services. Here’s Why TSMC (TSM) is a Great Momentum Stock to Buy
• Positive Sentiment: A TSMC vice president bought 1,000 shares, which investors may view as a sign of internal confidence in the company’s outlook. Taiwan Semiconductor Manufacturing (NYSE:TSM) VP Lipen Yuan Buys 1,000 Shares
• Neutral Sentiment: Market commentary continued to highlight TSMC as a major AI beneficiary and a core semiconductor holding, but these pieces were mostly opinion-driven rather than new catalysts. Taiwan Semiconductor knocked down to No. 7 globally after SpaceX’s record-breaking IPO
• Neutral Sentiment: Reports that Alphabet may split next-gen AI processor manufacturing between Samsung and TSMC suggest demand remains strong, though competition for future foundry business may increase. Alphabet (GOOGL) In Talks With Samsung For Manufacturing Next-Gen AI Processors
• Negative Sentiment: News that Intel and Apple are moving toward domestic chip production raised some investor concern that Apple could diversify more away from TSMC over time. Trump says Apple to partner with Intel on US chip design, production

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. DA Davidson reissued a “buy” rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Finally, Needham & Company LLC boosted their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The business’s fifty day moving average is $402.64 and its two-hundred day moving average is $356.22. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $2.40 trillion, a PE ratio of 38.50, a price-to-earnings-growth ratio of 1.24 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion for the quarter. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.12%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 2,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average price of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares of the company’s stock, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have acquired 4,496 shares of company stock worth $304,667. 1.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the stock. Shannon River Fund Management LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at $2,430,000. Capital Research Global Investors grew its position in shares of Taiwan Semiconductor Manufacturing by 66.3% during the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after buying an additional 1,281,648 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth $961,000. Meridian Wealth Management LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% during the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock valued at $20,049,000 after buying an additional 14,406 shares during the period. Finally, Boyer Financial Services Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at $648,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

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.