Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.1% – Here’s What Happened

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded down 2.1% on Friday . The stock traded as low as $417.32 and last traded at $418.54. Approximately 8,852,495 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 13,658,654 shares. The stock had previously closed at $427.30.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is advancing its A14 process technology for artificial-intelligence applications, emphasizing higher performance and improved power efficiency. Its A13 and A12 nodes are also extending the company’s next-generation manufacturing roadmap, supporting future demand from AI-chip designers. How TSMC is Advancing its A14 Technology Roadmap for AI Transformation
• Positive Sentiment: TSMC is reportedly winning additional 3-nanometer orders from Xiaomi, including production of the Xring O3 processor. The deal broadens TSMC’s advanced-chip customer base into AI-enabled consumer devices and autonomous-driving applications. Why Is Taiwan Semiconductor Manufacturing (TSM) Winning More 3nm AI Chip Work?
• Positive Sentiment: Billionaire investor Stanley Druckenmiller and another hedge fund reportedly bought TSMC shares, adding institutional validation to the view that TSMC remains a high-quality way to participate in AI growth. Stanley Druckenmiller Just Bought Taiwan Semiconductor Stock
• Positive Sentiment: TSMC and Sony’s planned $4.7 billion joint venture will develop and manufacture next-generation image sensors, with mass production expected in 2029. The project could diversify TSMC’s growth beyond conventional processors. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on AI Image Sensors
• Neutral Sentiment: Analysts continue to identify TSMC as a leading China-related technology investment, citing strong regional technology momentum and multiple growth drivers. Top China Tech Plays Worth Adding to Your Portfolio Right Now
• Negative Sentiment: TSMC’s reported 44.7% July revenue growth has raised the bar for major customer Nvidia’s upcoming outlook. Exceptionally high expectations increase the risk of disappointment if future guidance is merely solid rather than outstanding. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on TSM shares. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. TD Cowen raised their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research report on Friday, July 17th. DA Davidson boosted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a report on Friday, July 17th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday. Finally, Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and a consensus price target of $524.25.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a market cap of $2.17 trillion, a PE ratio of 30.20, a P/E/G ratio of 0.96 and a beta of 1.38. The stock’s 50 day simple moving average is $423.88 and its two-hundred day simple moving average is $395.94.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a dividend of $1.0854 per share. 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 Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average cost of $74.50 per share, with a total value of $74,500.00. Following the purchase, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Shyue-Shyh Lin bought 2,000 shares of the firm’s stock in a transaction dated Sunday, July 19th. The shares were purchased at an average price of $71.71 per share, with a total value of $143,420.00. Following the acquisition, the vice president directly owned 28,269 shares in the company, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 17,662 shares of company stock worth $1,307,491 in the last three months. 1.11% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently bought and sold shares of the business. Fisher Asset Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 1.8% during the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after purchasing an additional 313,773 shares during the period. Van ECK Associates Corp raised its position in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the period. Bank of America Corp DE raised its position in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock valued at $4,832,708,000 after purchasing an additional 966,926 shares during the period. Jennison Associates LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 6.4% during the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock worth $4,070,393,000 after purchasing an additional 802,757 shares in the last quarter. Finally, Coatue Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 6.9% during the fourth quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after purchasing an additional 556,988 shares in the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.