Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 2.5% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded up 2.5% during mid-day trading on Thursday . The company traded as high as $429.64 and last traded at $427.9530. 12,717,045 shares were traded during mid-day trading, a decline of 7% from the average session volume of 13,687,663 shares. The stock had previously closed at $417.69.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: More 3-nanometer AI business: TSMC is reportedly preparing to manufacture Xiaomi’s Xring O3 processor using its 3nm process. The deal broadens TSMC’s customer base in AI-enabled consumer devices and autonomous-driving applications, reinforcing demand for its highest-margin technology. Why Is Taiwan Semiconductor Manufacturing Winning More 3nm AI Chip Work?
• Positive Sentiment: Institutional buying: A hedge fund sold Sandisk shares and purchased TSM stock, highlighting preference for TSMC’s exposure to the semiconductor and AI infrastructure cycle. This Hedge Fund Just Sold Sandisk and Bought Taiwan Semiconductor Manufacturing Stock
• Positive Sentiment: Strong operating momentum: A reported 44.7% July revenue increase underscores powerful AI-related demand and supports expectations for robust results and guidance. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry
• Positive Sentiment: Long-term image-sensor opportunity: TSMC and Sony agreed to invest $4.7 billion in a joint venture for next-generation smartphone image sensors, with mass production expected in 2029. The project could add another strategic growth avenue, although revenue is several years away. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the Eyes of AI Machines
• Neutral Sentiment: Valuation and execution remain key: Analysts continue to view TSMC as a core beneficiary of the AI buildout, but future returns depend on sustained demand, capacity expansion and whether its valuation discount to major customers narrows. Price Prediction: TSM Will Trade at This Price in 2027
• Negative Sentiment: Expectations are elevated: TSMC’s rapid growth raises the bar for upcoming Nvidia-related capacity and demand commentary. Any ordinary guidance or signs of capacity constraints could trigger profit-taking despite the favorable long-term outlook. TSMC Jumps Before Nvidia Tests Its Capacity Bet

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Bank of America upped their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Needham & Company LLC increased their price target on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a report on Monday, July 27th. Sanford C. Bernstein raised their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 12th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Stock Performance

The business’s fifty day moving average price is $424.58 and its 200-day moving average price is $395.38. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a market cap of $2.22 trillion, a PE ratio of 30.88, a P/E/G ratio of 0.96 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The firm had revenue of $39.89 billion during the quarter. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is 21.43%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the acquisition, the vice president directly owned 14,051 shares of the company’s stock, valued at $1,026,566.06. This represents 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 link. Also, VP Shyue-Shyh Lin purchased 1,000 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was purchased at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the purchase, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders purchased 17,662 shares of company stock worth $1,307,491. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Cedar Mountain Advisors LLC raised its position in Taiwan Semiconductor Manufacturing by 88.2% in the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 30 shares during the period. Markowski Investments bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $33,000. Quattro Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth $27,000. Finally, Evolution Wealth Management Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the period. Hedge funds and other institutional investors own 16.51% of the company’s stock.

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.