Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 2.8% on Friday . The company traded as high as $372.20 and last traded at $370.5370. 8,913,288 shares changed hands during trading, a decline of 38% from the average session volume of 14,364,380 shares. The stock had previously closed at $360.39.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: DA Davidson started coverage with a Buy and a $450 price target, citing TSMC’s execution and AI-driven demand — a direct analyst catalyst supporting further upside. DA Davidson Assigns TSMC (TSM) a Buy Rating Amid AI Demand Growth
• Positive Sentiment: Company packaging advances plus a new Taiwan–U.S. trade agreement were reported as reframing TSMC’s growth outlook — this supports longer-term revenue from high‑performance and AI chips and bolsters capex visibility. Taiwan Semiconductor Packaging Breakthrough And Trade Deal Reframe Growth Outlook
• Positive Sentiment: Social and data platforms flagged a sharp January revenue surge and sustained AI infrastructure demand, reinforcing the narrative of multi‑year secular growth and supporting lofty analyst price targets. TSMC Stock (TSM) Opinions on January Revenue Surge
• Positive Sentiment: Notable hedge fund/investor activity (Druckenmiller, Tepper/Appaloosa, 13F interest from other big managers) shows continued institutional conviction, which can amplify momentum. 13F: What Druckenmiller, Dalio, Tepper, & NVIDIA are Buying Appaloosa’s David Tepper Boosts 70,000 Shares in TSMC
• Neutral Sentiment: Patent and co‑packaged optics analyses note TSMC as a leading IP player in advanced packaging/optical interconnects — strategic but longer‑term in impact. Co-Packaged Optics & Optical Interconnects Patent Landscape Analysis 2026
• Neutral Sentiment: TSMC is repeatedly featured in “best stocks” and investment‑idea roundups (Fool, Zacks). Useful for retail interest but less of an immediate price driver than corporate/earnings news. The Best Stocks to Buy With $10,000 Right Now Zacks Investment Ideas feature highlights Nvidia, Taiwan, Bloom Energy…
• Neutral Sentiment: Competitive development — startups (e.g., Taalas) and peer advancements (Micron debates) attract attention but so far don’t displace TSMC’s foundry scale; monitor as a medium‑term watch item. Chip startup Taalas raises $169 million… Is Micron Technology the Next Taiwan Semiconductor Manufacturing?
• Negative Sentiment: Geopolitical and “replacement anxiety” concerns (trade frictions, Taiwan‑China tensions) remain a persistent downside risk that can trigger volatility or disrupt supply chains. Replacement Anxiety
• Negative Sentiment: Valuation worries and articles asking whether TSMC is “too expensive” could cap near‑term gains if growth expectations cool. Is Taiwan Semiconductor Too Expensive Now?

Analysts Set New Price Targets

Several brokerages have commented on TSM. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. DA Davidson raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Friday, February 13th. TD Cowen increased their target price on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a report on Friday, January 16th. Finally, Needham & Company LLC lifted their price target on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Four investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.47 and a current ratio of 2.69. The company’s fifty day simple moving average is $328.02 and its two-hundred day simple moving average is $293.19. The stock has a market capitalization of $1.92 trillion, a PE ratio of 34.79, a P/E/G ratio of 1.03 and a beta of 1.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The company had revenue of $32.50 billion for the quarter. As a group, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders 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 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 23.57%.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of large investors have recently made changes to their positions in TSM. Catalyst Investment Management LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth about $515,000. Sunbelt Securities Inc. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 13.7% during the 4th quarter. Sunbelt Securities Inc. now owns 8,703 shares of the semiconductor company’s stock worth $2,645,000 after purchasing an additional 1,046 shares during the last quarter. Dorsey Wright & Associates purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $1,674,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth about $184,000. Finally, T. Rowe Price Investment Management Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after buying an additional 1,313,917 shares during the last quarter. Institutional investors and hedge funds 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.