Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.5% Higher – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price shot up 2.5% during mid-day trading on Monday . The stock traded as high as $445.72 and last traded at $445.33. 9,894,194 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 13,345,186 shares. The stock had previously closed at $434.67.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Erste Group Bank raised its Taiwan Semiconductor earnings forecasts to $16.78 per share for FY2026 and $21.91 for FY2027, modestly above its prior estimates and supporting the view that AI-related demand can drive continued profit growth. MarketBeat analyst estimates
• Positive Sentiment: TSMC is moving closer to suppliers through a new validation hub and training center in Kaohsiung. The facility could shorten supplier qualification cycles and reduce packaging bottlenecks as demand from Nvidia and other chip designers increases, although it does not add disclosed production capacity. TSMC Gains as Packaging Moves Closer to Its Suppliers
• Positive Sentiment: Broader market conditions are supportive: Taiwan’s Taiex reached a record intraday high as technology shares advanced, with TSMC among the semiconductor stocks gaining. A report that AMD may raise chip prices because of higher wafer costs also reinforced expectations for favorable industry pricing and demand. Taiwan benchmark Taiex rises to record intraday high
• Neutral Sentiment: TSMC’s quarterly capital expenditure surged to $15.59 billion, reflecting aggressive investment to expand capacity for advanced chips and packaging. The spending supports long-term growth but increases near-term execution and return-on-investment risks. TSMC capital expenditure analysis
• Negative Sentiment: Management expects gross margin to moderate during the next quarter as the 2-nanometer production ramp creates dilution. The projected step down is limited relative to the year-over-year margin expansion, but it could temper near-term earnings enthusiasm.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Bank of America raised their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Stifel Nicolaus began coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target on the stock. TD Cowen boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Finally, Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research note on Thursday, July 16th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a 50 day moving average of $418.50 and a 200 day moving average of $403.41. The company has a market capitalization of $2.33 trillion, a price-to-earnings ratio of 32.34, a price-to-earnings-growth ratio of 0.99 and a beta of 1.39. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business 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, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.25%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 1,000 shares of the stock in a transaction dated Monday, August 3rd. The stock was purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the transaction, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Shyue-Shyh Lin bought 1,000 shares of the stock in a transaction on Tuesday, July 21st. The stock was acquired at an average price of $74.13 per share, with a total value of $74,130.00. Following the completion of the acquisition, the vice president owned 30,269 shares of the company’s stock, valued at $2,243,840.97. This represents a 3.42% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 19,106 shares of company stock valued at $1,417,283. 1.11% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently made changes to their positions in the stock. Silicon Valley Capital Partners increased its position in shares of Taiwan Semiconductor Manufacturing by 3,790.5% during the 2nd quarter. Silicon Valley Capital Partners now owns 25,677 shares of the semiconductor company’s stock valued at $12,263,000 after purchasing an additional 25,017 shares during the last quarter. Security National Bank of Sioux City Iowa IA bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter worth $49,000. Anchor Investment Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 4.5% during the second quarter. Anchor Investment Management LLC now owns 11,377 shares of the semiconductor company’s stock worth $5,433,000 after buying an additional 488 shares during the period. Smith Chas P & Associates PA Cpas boosted its stake in Taiwan Semiconductor Manufacturing by 3.1% during the second quarter. Smith Chas P & Associates PA Cpas now owns 1,010 shares of the semiconductor company’s stock worth $482,000 after buying an additional 30 shares during the period. Finally, Miramontes Capital LLC bought a new position in Taiwan Semiconductor Manufacturing during the second quarter valued at $714,000. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.