Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 4.3% Higher – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price rose 4.3% on Tuesday . The stock traded as high as $389.18 and last traded at $385.8110. Approximately 13,148,702 shares changed hands during mid-day trading, a decline of 7% from the average daily volume of 14,199,820 shares. The stock had previously closed at $370.04.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC says it’s targeting very high gross margins (63%–65% in Q1) even after a small 2%–4% headwind from overseas fabs, signaling strong pricing power and demand for advanced-node AI chips. Can TSM Sustain 60%+ Gross Margin Amid Overseas Fab Expansion?
• Positive Sentiment: Large hedge-fund positioning: recent filings show major managers adding sizable TSM stakes (Point72 disclosed roughly $870M), which boosts demand from institutional flows and validates TSMC’s AI exposure. Billionaire fund manager drops $2.8 billion on Big Tech stocks
• Positive Sentiment: Multiple analyst and sector pieces highlight TSMC as a top AI supply-chain beneficiary and one of the AI stocks outpacing peers, supporting a growth narrative that underpins higher valuations. 3 AI Stocks Outpacing NVIDIA in 2026 – With More Upside Ahead
• Positive Sentiment: MarketBeat’s supply-chain piece reiterates TSMC’s central role in the nanotech stack behind AI — a reminder that structural demand (data centers, AI chips) supports durable revenue and capex visibility. The Supply Chain Quietly Powering the AI Boom—And 4 Ways to Play It
• Positive Sentiment: Retail and institutional attention is elevated (TSM among most-searched stocks on Zacks), which can amplify momentum and volume in the near term. Investors Heavily Search Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Here is What You Need to Know
• Neutral Sentiment: Media and advisory pieces debate whether Wall Street’s bullish ratings justify fresh buys; analysts remain optimistic but some coverage cautions about near-term volatility. Is It Worth Investing in TSMC (TSM) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Valuation worries: some commentary asks if the stock is richly priced after ~95% one‑year gains, which could cap upside and increase sensitivity to earnings misses. Is It Too Late To Consider Taiwan Semiconductor Manufacturing (NYSE:TSM) After 95% One Year Rally?
• Negative Sentiment: Macro risk: a reported increase in global tariffs has weighed on futures and raises geopolitical/ trade uncertainty that could complicate supply chains or raise costs for global manufacturers. Dow Jones Futures Fall After Trump Hikes Global Tariff To 15%

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on TSM shares. TD Cowen raised their target price on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a research note on Friday, January 16th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. The Goldman Sachs Group restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Finally, Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a report on Friday, January 23rd. Four analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Up 4.3%

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The company has a market cap of $2.00 trillion, a PE ratio of 36.23, a P/E/G ratio of 1.03 and a beta of 1.31. The business’s 50 day moving average is $329.67 and its 200-day moving average is $294.52.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. The business had revenue of $32.50 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be paid a $0.9503 dividend. This represents a $3.80 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 28.64%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Childress Capital Advisors LLC increased its position in Taiwan Semiconductor Manufacturing by 145.3% during the 3rd quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock worth $891,000 after purchasing an additional 1,891 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 9.4% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock worth $28,470,000 after buying an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 28.6% in the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock valued at $10,394,000 after buying an additional 8,284 shares during the last quarter. Hollencrest Capital Management lifted its stake in shares of Taiwan Semiconductor Manufacturing by 125.3% during the third quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock valued at $1,457,000 after buying an additional 2,901 shares during the period. Finally, Cherokee Insurance Co acquired a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth approximately $1,248,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.