Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.8% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares fell 2.8% during trading on Thursday . The stock traded as low as $369.70 and last traded at $376.93. 14,430,736 shares changed hands during trading, an increase of 2% from the average session volume of 14,123,526 shares. The stock had previously closed at $387.73.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Reported strong quarterly results — TSMC posted $3.11 EPS and $30.65B in revenue, with a 45% net margin and 36% ROE, underscoring very high profitability. Earnings report
• Positive Sentiment: Raised the annual dividend ~28% to at least TWD 23 and guided for ~38% revenue growth in Q1 2026 — a shareholder-friendly move that signals confidence in near-term demand. TSMC Raises Dividend 28%
• Positive Sentiment: Long-term AI exposure — TSMC expects AI chip revenue to grow at roughly a 60% CAGR through 2029, supporting secular growth expectations for advanced-node capacity. TSMC AI chip revenue outlook
• Positive Sentiment: Momentum/market recognition — TSMC recently hit a 52‑week high and crossed a ~$2T market cap as AI-driven chip demand (and deals like the AMD supply agreement) lifted investor sentiment. TSM hits 52-week high
• Neutral Sentiment: Broader flows into international equities (ex-U.S.) are benefiting large Taiwan names like TSM, a structural tailwind but not company-specific news. International ETF flows
• Neutral Sentiment: Analyst and media coverage continues to position TSMC as a core AI play, which supports long-term interest but may keep volatility high around macro/sector events. AI stock recommendations
• Negative Sentiment: Profit-taking and sector volatility — after a strong run and a new 52‑week high, some investors are trimming exposure; chip-sector swings (e.g., ahead of major reports from peers like Nvidia) can pressure TSMC stock. Sector volatility / Nvidia coverage
• Negative Sentiment: Geopolitical and policy risk remains a concern — articles note that stronger revenue and dividends reframe but do not eliminate Taiwan-related and tariff risks that could weigh on sentiment. Geopolitical risk discussion

Wall Street Analysts Forecast Growth

A number of analysts have commented on TSM shares. Barclays upped their price target on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the company an “overweight” rating in a research report on Friday, January 16th. TD Cowen boosted their price target on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a research note on Friday, January 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. DA Davidson upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Friday, February 13th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Four equities research 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 company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The business’s fifty day moving average price is $333.85 and its 200-day moving average price is $296.18. 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 stock has a market capitalization of $1.95 trillion, a PE ratio of 35.39, a P/E/G ratio of 1.08 and a beta of 1.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. As a group, equities research analysts expect 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. Stockholders of record on Thursday, June 11th will be issued a $0.9503 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently modified their holdings of the company. Mitchell Sinkler & Starr PA lifted its stake in Taiwan Semiconductor Manufacturing by 1.9% in the fourth quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock worth $450,000 after purchasing an additional 28 shares during the last quarter. Wayfinding Financial LLC raised its holdings in Taiwan Semiconductor Manufacturing by 2.5% in the fourth quarter. Wayfinding Financial LLC now owns 1,152 shares of the semiconductor company’s stock worth $350,000 after purchasing an additional 28 shares in the last quarter. Thompson Siegel & Walmsley LLC grew its holdings in Taiwan Semiconductor Manufacturing by 3.6% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 868 shares of the semiconductor company’s stock worth $264,000 after purchasing an additional 30 shares during the period. Oak Harvest Investment Services raised its stake in Taiwan Semiconductor Manufacturing by 2.9% during the fourth quarter. Oak Harvest Investment Services now owns 1,106 shares of the semiconductor company’s stock valued at $336,000 after buying an additional 31 shares during the last quarter. Finally, Solstein Capital LLC boosted its stake in Taiwan Semiconductor Manufacturing by 4.8% in the 4th quarter. Solstein Capital LLC now owns 695 shares of the semiconductor company’s stock worth $211,000 after purchasing an additional 32 shares in the last quarter. 16.51% of the stock is 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.