Taiwan Semiconductor Manufacturing (NYSE:TSM) Price Target Raised to $560.00

Taiwan Semiconductor Manufacturing (NYSE:TSM) had its target price upped by Needham & Company LLC from $530.00 to $560.00 in a report issued on Thursday,Benzinga reports. Needham & Company LLC currently has a buy rating on the semiconductor company’s stock.

Other equities analysts have also issued research reports about the company. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. TD Cowen upped their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Sanford C. Bernstein raised their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Bank of America increased their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price objective for the company. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE:TSM opened at $413.15 on Thursday. 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 has a 1 year low of $266.82 and a 1 year high of $487.47. The firm has a market capitalization of $2.14 trillion, a PE ratio of 26.59, a P/E/G ratio of 0.85 and a beta of 1.37. The business’s 50 day moving average price is $434.71 and its 200-day moving average price is $417.11.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. The company had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing will post 16.90 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date of this dividend is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 22.07%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien acquired 1,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was acquired at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares of the company’s stock, valued at $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Lipen Yuan purchased 350 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following the purchase, the vice president owned 2,000 shares in the company, valued at $147,160. This trade represents a 21.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 13,043 shares of company stock valued at $970,386 in the last three months. 1.11% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of large investors have recently modified their holdings of TSM. 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 acquiring an additional 1,839,600 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its stake in Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after acquiring an additional 1,313,917 shares in the last quarter. Corient Private Wealth LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 330.0% in the fourth quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock worth $481,111,000 after acquiring an additional 1,215,035 shares during the last quarter. Fundsmith LLP bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter worth about $548,465,000. Finally, Assenagon Asset Management S.A. bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter worth about $490,461,000. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.