Taiwan Semiconductor Manufacturing (NYSE:TSM) Sets New 1-Year High – Time to Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) reached a new 52-week high on Monday . The company traded as high as $333.55 and last traded at $332.3860, with a volume of 9917640 shares. The stock had previously closed at $323.63.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analysts and outlets expect a record Q4 driven by AI infrastructure demand; several previews say Q4 profit/revenue should be materially higher, reinforcing upside to near-term results. TSMC Q4 profit poised to soar 27% as AI demand drives growth
• Positive Sentiment: Industry commentators and note-writers call TSMC a primary beneficiary of the AI cycle (pricing power, sold-out advanced packaging and multi-quarter revenue acceleration), supporting continued margin expansion and multiple expansion potential. Taiwan Semiconductor: Another Blowout Earnings Look Inevitable
• Positive Sentiment: Reports say the U.S. and Taiwan discussions include tariff-relief elements and TSMC is planning U.S. capacity expansion — a policy/backdrop that reduces geopolitical risk for U.S. customers and could win new orders. Market reaction to trade-deal headlines lifted the stock. TSMC Plans U.S. Expansion in Proposed Taiwan Tariff-Relief Deal
• Neutral Sentiment: Multiple market roundups and analyst previews (earnings calendars and “how to play” pieces) are flagging TSMC as a top earnings event this week — increases visibility and trading volume but already priced-in in part. Top Stocks With Earnings This Week: TSMC, Big Banks And More
• Neutral Sentiment: Valuation/idea pieces list TSMC as an undervalued AI play vs. peers — helpful context for longer-term buyers but less immediately catalytic than concrete results or policy. Top Undervalued AI Stocks: Micron, TSMC, Qualcomm Dominate
• Negative Sentiment: Some analysts warn rising costs from overseas expansions and heavy capex (to add U.S. capacity) could pressure near-term profitability even as revenue rises — a risk to watch in the upcoming report and guidance. Taiwan Semiconductor to Report Q4 Earnings: How to Play the Stock?

Analyst Upgrades and Downgrades

A number of brokerages have commented on TSM. Sanford C. Bernstein reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, December 29th. Itau BBA Securities began coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, October 7th. They set an “outperform” rating on the stock. Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research note on Friday, October 17th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Eight investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $355.00.

Taiwan Semiconductor Manufacturing Stock Up 2.5%

The stock has a market capitalization of $1.72 trillion, a P/E ratio of 34.04, a P/E/G ratio of 0.92 and a beta of 1.29. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. The firm’s fifty day moving average is $295.56 and its 200-day moving average is $270.42.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%. As a group, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be paid a $0.9678 dividend. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.74%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Jennison Associates LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 26.7% in the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company’s stock worth $2,728,478,000 after acquiring an additional 2,537,760 shares during the last quarter. Brown Advisory Inc. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 43.2% in the second quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company’s stock valued at $1,506,389,000 after purchasing an additional 2,006,745 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Taiwan Semiconductor Manufacturing by 109.5% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company’s stock valued at $798,640,000 after purchasing an additional 1,842,951 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its position in Taiwan Semiconductor Manufacturing by 268.2% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock worth $566,152,000 after purchasing an additional 1,820,852 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in Taiwan Semiconductor Manufacturing by 18.0% during the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company’s stock worth $2,368,587,000 after buying an additional 1,593,786 shares in the last quarter. 16.51% of the stock is owned by institutional investors.

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.