Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 2.8% – Time to Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was up 2.8% during trading on Monday. The stock traded as high as $487.47 and last traded at $486.0440. Approximately 10,816,939 shares were traded during trading, a decline of 18% from the average session volume of 13,139,375 shares. The stock had previously closed at $472.78.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Elon Musk confirmed that TSMC is in early discussions about Terafab, a proposed Texas chipmaking venture intended to supply Tesla, SpaceX and xAI. Although the talks remain unconfirmed and details are limited, investors viewed the potential partnership as a major new customer opportunity. Musk confirms talks with TSMC over Terafab chip plant
• Positive Sentiment: The Terafab reports reinforced expectations that TSMC’s advanced manufacturing capacity will remain heavily utilized, alongside demand from Nvidia, Apple and other major chip designers. This helped drive the stock to another record. TSMC hits another record but Nvidia and Apple demand may become its next problem
• Positive Sentiment: Investor commentary ahead of the October 15 quarterly results remains bullish, with expectations for sustained artificial-intelligence chip demand and strong execution supporting the case for TSM stock. I’m Loading Up on Taiwan Semiconductor Ahead of Oct. 15 Earnings
• Neutral Sentiment: TSMC’s overseas factory expansion could strengthen geographic diversification and customer relationships, but new facilities may initially generate lower margins and higher costs. Investors are weighing that risk against the company’s highly profitable Taiwan operations. How Much Overseas Factory Cost Can TSMC’s Valuation Absorb?
• Negative Sentiment: Despite strong current demand, reliance on large customers such as Nvidia and Apple creates a potential vulnerability if their orders or broader AI-chip spending slows. TSMC’s elevated valuation makes any disappointment in demand or margins more consequential. TSMC hits another record but Nvidia and Apple demand may become its next problem

Analyst Upgrades and Downgrades

TSM has been the subject of a number of research analyst reports. DA Davidson lifted their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Sanford C. Bernstein boosted their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Susquehanna increased their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Finally, Barclays lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Up 2.8%

The firm’s 50 day simple moving average is $425.59 and its 200 day simple moving average is $409.69. The company has a market cap of $2.52 trillion, a price-to-earnings ratio of 35.07, a price-to-earnings-growth ratio of 1.05 and a beta of 1.37. 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 issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed 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 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.25%.

Insider Activity

In related news, VP Lipen Yuan acquired 350 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were purchased at an average cost of $73.58 per share, with a total value of $25,753.00. Following the completion of the transaction, the vice president owned 2,000 shares of the company’s stock, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the company’s stock in a transaction on Tuesday, July 21st. The stock was bought at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the purchase, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 16,106 shares of company stock worth $1,186,463 over the last quarter. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the company. Janus Henderson Group PLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after acquiring an additional 594,780 shares in the last quarter. Franklin Resources Inc. boosted its position in Taiwan Semiconductor Manufacturing by 8.8% during the fourth quarter. Franklin Resources Inc. now owns 7,513,453 shares of the semiconductor company’s stock worth $2,283,263,000 after purchasing an additional 605,256 shares during the period. Tiger Global Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. Clearbridge Investments LLC grew its holdings in Taiwan Semiconductor Manufacturing by 3.3% during the fourth quarter. Clearbridge Investments LLC now owns 4,414,472 shares of the semiconductor company’s stock valued at $1,341,514,000 after purchasing an additional 140,784 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Taiwan Semiconductor Manufacturing by 1.1% during the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock valued at $1,131,025,000 after purchasing an additional 40,842 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.