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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded up 2.8% on Monday . The company traded as high as $349.40 and last traded at $348.5060. 18,669,665 shares changed hands during trading, an increase of 32% from the average session volume of 14,124,307 shares. The stock had previously closed at $338.89.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Company reported double‑digit February revenue growth (consolidated net revenue NT$317.66B), reinforcing momentum from AI chip demand that underpins near‑term sales and cash generation. TSMC Posts Double-Digit February Revenue Growth Year-on-Year Despite Monthly Drop
• Positive Sentiment: Multiple reports highlight large sales gains (some sources citing ~30% Y/Y) fueled by advanced nodes and AI infrastructure spending — a fundamental tailwind for TSM’s near- and medium-term revenue growth. Taiwan Semiconductor’s Sales Rise 30% On A.I. Chip Demand
• Positive Sentiment: Sell‑side optimism and upgrades are supporting the stock — Zacks upgraded TSMC to a Strong Buy and Bank of America reiterated a Buy with a high price target (~$470), signaling continued analyst confidence in margins and technology leadership. TSMC (TSM) Upgraded to Strong Buy: Here’s What You Should Know
• Positive Sentiment: Bullish commentary frames recent weakness as a buying opportunity given TSMC’s high gross/operating margins, large cash balance, and central role in AI supply chains. TSMC: Recent Fears Make This Another Bargain Buying Opportunity
• Neutral Sentiment: Broad analyst‑recommendation coverage explains part of the price action; media reports on rating changes move sentiment but investors should weigh underlying fundamentals vs. headline-driven volatility. Brokers Suggest Investing in TSMC (TSM): Read This Before Placing a Bet
• Neutral Sentiment: Industry data show semiconductor sales surging (AI cycle), supporting sector momentum that benefits TSMC but also attracts competitive and capacity considerations. The Zacks Analyst Blog Analog Devices, NXP, Taiwan and NVIDIA
• Negative Sentiment: Barron’s warns that despite strong revenue growth investors are focused on seasonal lulls and potential energy‑supply disruptions in Taiwan — risks that can pressure near‑term sentiment and supply continuity. TSMC Stock Slips. Why Strong Revenue Growth Isn’t Enough for Investors
• Negative Sentiment: Some market reports say recent monthly growth missed expectations, which sparked selling in related chip names and highlights how sensitive the stock is to short‑term top‑line beats/misses. Impinj and IPG Photonics Shares Are Falling, What You Need To Know
• Negative Sentiment: Valuation debate: after a strong multi‑month rally TSMC faces scrutiny over rich multiples, which can cap upside unless earnings acceleration and margin expansion convincingly continue. Taiwan Semiconductor Manufacturing (NYSE:TSM) Valuation Debate Defines Market Narrative

Wall Street Analyst Weigh In

A number of analysts have issued reports on TSM shares. DA Davidson raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Friday, February 13th. Freedom Capital upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Sanford C. Bernstein reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. Argus raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Finally, Barclays increased their target price on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday, January 16th. Four equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The business has a 50 day moving average of $344.95 and a 200-day moving average of $304.23. The company has a market capitalization of $1.84 trillion, a P/E ratio of 33.27, a price-to-earnings-growth ratio of 0.97 and a beta of 1.29. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.42 and a current ratio of 2.62.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business 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 34.89%. On average, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 28.36%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $27,000. Stephens Consulting LLC boosted its stake in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after buying an additional 41 shares in the last quarter. Strategic Advocates LLC grew its position in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $29,000. Institutional investors own 16.51% of the company’s stock.

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.