Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.5% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price was down 4.5% during trading on Thursday. The company traded as low as $410.22 and last traded at $412.3510. 16,306,243 shares changed hands during trading, an increase of 25% from the average session volume of 13,097,141 shares. The stock had previously closed at $431.89.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Moody’s upgraded TSMC’s rating to Aa2 from Aa3, citing the company’s dominant foundry position and sustained AI-related demand. The outlook was raised to stable, supporting TSMC’s access to financing and signaling strong balance-sheet credit quality. Moody’s upgrades TSMC rating
• Positive Sentiment: TSMC confirmed discussions with SpaceX about the proposed Terafab chip plant. The opportunity could create additional long-term demand and expand TSMC’s strategic role in advanced semiconductor manufacturing, although participation reportedly depends on TSMC operating the facility. TSMC and SpaceX Terafab discussions
• Positive Sentiment: AI infrastructure demand remains the central bullish theme. Analysts and investors view TSMC’s leading-edge manufacturing, advanced packaging and capacity investments as critical to meeting demand that currently exceeds available supply. Recent commentary also argues that strong earnings growth could support substantial long-term appreciation. ASML versus TSMC AI demand analysis
• Positive Sentiment: TSMC executives increased their shareholdings in recent regulatory filings, a modest signal of insider confidence. New ETFs also feature TSMC prominently, potentially increasing investor exposure to the company as an AI semiconductor leader.
• Neutral Sentiment: TSM was highlighted as a preferred China-related technology investment alongside companies benefiting from AI, electric vehicles and augmented reality. The ETF launches and investment commentary may improve visibility, but they do not materially change TSMC’s fundamentals in the near term.
• Negative Sentiment: The reports provide no direct earnings disappointment or downgrade. However, comparisons with ASML emphasize that AI demand is exceeding current industry capacity, leaving execution, capital spending and the speed of new-fab expansion as key risks. High investor expectations could make the stock vulnerable if growth or capacity targets fall short.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on TSM shares. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target for the company. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b)” rating in a research report on Wednesday. Bank of America raised their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Needham & Company LLC lifted their price target on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a research note on Thursday, October 15th. Finally, Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 4.5%

The firm has a market capitalization of $2.14 trillion, a price-to-earnings ratio of 26.53, a price-to-earnings-growth ratio of 0.86 and a beta of 1.37. 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 business’s 50 day moving average is $434.47 and its 200-day moving average is $420.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 EPS for the quarter. The company had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. Equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.03 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared 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. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien acquired 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Monday, August 3rd. The shares were purchased at an average price of $73.06 per share, with a total value of $73,060.00. Following the acquisition, the vice president owned 14,051 shares in the company, valued at $1,026,566.06. This represents a 7.66% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Lipen Yuan acquired 1,000 shares of the firm’s stock in a transaction on Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the transaction, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. The trade was a 20.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 8,043 shares of company stock valued at $598,956 in the last 90 days. 1.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently added to or reduced their stakes in the company. Tiger Global Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the last quarter. Sei Investments Co. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 11.8% in the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after purchasing an additional 274,389 shares during the period. Assenagon Asset Management S.A. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 67.2% in the 3rd quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock valued at $783,513,000 after purchasing an additional 690,523 shares during the period. Bessemer Group Inc. boosted its position in shares of Taiwan Semiconductor Manufacturing by 7.9% in the 1st quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company’s stock worth $602,147,000 after purchasing an additional 130,602 shares during the last quarter. Finally, AMF Tjanstepension AB boosted its position in shares of Taiwan Semiconductor Manufacturing by 6.4% in the 1st quarter. AMF Tjanstepension AB now owns 1,632,738 shares of the semiconductor company’s stock worth $551,784,000 after purchasing an additional 98,123 shares during the last quarter. Institutional investors 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 dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.