Brokerages Set Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Target Price at $523.22

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) has earned a consensus rating of “Buy” from the seventeen research firms that are covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating, twelve have given a buy rating and three have issued a strong buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $523.2222.

TSM has been the subject of several analyst reports. Bank of America upped their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a research report on Monday, July 27th. Finally, Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research note on Thursday, July 16th.

Taiwan Semiconductor Manufacturing Trading Up 0.7%

TSM opened at $433.32 on Friday. The firm has a market capitalization of $2.25 trillion, a price-to-earnings ratio of 31.26, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company’s 50 day simple moving average is $417.39 and its two-hundred day simple moving average is $401.87. Taiwan Semiconductor Manufacturing has a 1-year low of $262.81 and a 1-year high of $479.00. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. Analysts expect that Taiwan Semiconductor Manufacturing will post 16.55 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 25.25%.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: 2nm technology is gaining commercial traction. MediaTek selected TSMC’s 2nm process for its Dimensity 9600 Pro, while using TSMC’s 3nm technology for the broader 9600M line. The dual-node launch gives TSMC’s newest process near-term visibility in consumer devices and provides an early validation of its advanced manufacturing leadership. TSMC Gains 1.65% as 2-Nanometer Phones Leave the Lab
• Positive Sentiment: TSMC is ramping 2nm production and increasing investment. Higher spending and capacity expansion are intended to meet expected demand from smartphone and AI-chip customers. The investment could strengthen long-term revenue growth, though it also raises capital requirements before full returns are realized. Why TSM Is Ramping 2nm Production And Spending More
• Positive Sentiment: AI demand remains the central growth catalyst. Analysts and fund managers describe TSMC as a key “pick-and-shovel” supplier for AI accelerators and data-center buildouts. Recent revenue acceleration, strong quarterly results, and infrastructure demand support expectations for continued earnings growth and potential upside. Taiwan Semiconductor Q2 Earnings: AI Infrastructure Demand Sets the Stage for Decade-Long Compounding
• Neutral Sentiment: A new ETF, AIFR, is designed to provide concentrated exposure to semiconductor foundries, potentially increasing visibility for TSMC. However, its narrow mandate, higher fee, and heavy geopolitical concentration could make the fund less attractive to some investors. Portfolio Fit: AIFR
• Negative Sentiment: Valuation and execution risks are becoming more prominent. One analysis suggests TSM may be about 14% overvalued despite the MediaTek win. A costly 2nm ramp, a shortage of skilled workers in U.S. manufacturing operations, and geopolitical concentration in Taiwan could weigh on margins, expansion speed, or the stock’s valuation. TSM Could Be 14% Overvalued As 2nm MediaTek Win Lands

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares of the company’s stock, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average price of $74.13 per share, with a total value of $74,130.00. Following the completion of the transaction, the vice president directly owned 30,269 shares of the company’s stock, valued at $2,243,840.97. This trade represents a 3.42% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 20,106 shares of company stock worth $1,496,473 in the last 90 days. 1.11% of the stock is owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently modified their holdings of TSM. Fisher Asset Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after acquiring an additional 313,773 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock worth $2,497,638,000 after acquiring an additional 594,780 shares during the last quarter. Franklin Resources Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 8.8% in the 4th quarter. Franklin Resources Inc. now owns 7,513,453 shares of the semiconductor company’s stock worth $2,283,263,000 after acquiring an additional 605,256 shares during the last quarter. Tiger Global Management LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. Finally, Clearbridge Investments LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 3.3% during the 4th quarter. Clearbridge Investments LLC now owns 4,414,472 shares of the semiconductor company’s stock worth $1,341,514,000 after purchasing an additional 140,784 shares during the period. 16.51% of the stock is owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.