Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 4.3% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded up 4.3% during mid-day trading on Tuesday . The company traded as high as $389.18 and last traded at $385.8110. 13,148,702 shares traded hands during trading, a decline of 7% from the average session volume of 14,199,820 shares. The stock had previously closed at $370.04.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC says it’s targeting very high gross margins (63%–65% in Q1) even after a small 2%–4% headwind from overseas fabs, signaling strong pricing power and demand for advanced-node AI chips. Can TSM Sustain 60%+ Gross Margin Amid Overseas Fab Expansion?
• Positive Sentiment: Large hedge-fund positioning: recent filings show major managers adding sizable TSM stakes (Point72 disclosed roughly $870M), which boosts demand from institutional flows and validates TSMC’s AI exposure. Billionaire fund manager drops $2.8 billion on Big Tech stocks
• Positive Sentiment: Multiple analyst and sector pieces highlight TSMC as a top AI supply-chain beneficiary and one of the AI stocks outpacing peers, supporting a growth narrative that underpins higher valuations. 3 AI Stocks Outpacing NVIDIA in 2026 – With More Upside Ahead
• Positive Sentiment: MarketBeat’s supply-chain piece reiterates TSMC’s central role in the nanotech stack behind AI — a reminder that structural demand (data centers, AI chips) supports durable revenue and capex visibility. The Supply Chain Quietly Powering the AI Boom—And 4 Ways to Play It
• Positive Sentiment: Retail and institutional attention is elevated (TSM among most-searched stocks on Zacks), which can amplify momentum and volume in the near term. Investors Heavily Search Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Here is What You Need to Know
• Neutral Sentiment: Media and advisory pieces debate whether Wall Street’s bullish ratings justify fresh buys; analysts remain optimistic but some coverage cautions about near-term volatility. Is It Worth Investing in TSMC (TSM) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Valuation worries: some commentary asks if the stock is richly priced after ~95% one‑year gains, which could cap upside and increase sensitivity to earnings misses. Is It Too Late To Consider Taiwan Semiconductor Manufacturing (NYSE:TSM) After 95% One Year Rally?
• Negative Sentiment: Macro risk: a reported increase in global tariffs has weighed on futures and raises geopolitical/ trade uncertainty that could complicate supply chains or raise costs for global manufacturers. Dow Jones Futures Fall After Trump Hikes Global Tariff To 15%

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on TSM shares. TD Cowen boosted their target price on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a report on Friday, January 16th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, December 29th. Four research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Price Performance

The company has a market cap of $2.00 trillion, a PE ratio of 36.23, a price-to-earnings-growth ratio of 1.03 and a beta of 1.31. The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The firm has a 50 day simple moving average of $329.67 and a 200-day simple moving average of $294.52.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data 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 firm had revenue of $32.50 billion for the quarter. As a group, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be paid a dividend of $0.9503 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 28.64%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of TSM. Fisher Asset Management LLC lifted its position in 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 worth $5,514,662,000 after buying an additional 313,773 shares in the last quarter. Van ECK Associates Corp increased its stake in shares of Taiwan Semiconductor Manufacturing by 11.1% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Taiwan Semiconductor Manufacturing by 6.5% during the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after acquiring an additional 966,926 shares during the period. Massachusetts Financial Services Co. MA boosted its position in shares of Taiwan Semiconductor Manufacturing by 3.6% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company’s stock valued at $4,401,448,000 after acquiring an additional 541,047 shares during the last quarter. Finally, Jennison Associates LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after purchasing an additional 802,757 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

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.