Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.7% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares rose 1.7% during trading on Tuesday . The company traded as high as $346.76 and last traded at $346.0110. Approximately 11,361,819 shares changed hands during trading, a decline of 19% from the average daily volume of 14,107,911 shares. The stock had previously closed at $340.23.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Bernstein and other bullish analyst commentary keep the narrative that TSMC’s AI-driven revenue rally has more room to run, supporting investor appetite for the stock. TSMC Stock (TSM): Top Bernstein Analyst Turns Up the Heat on This AI Chipmaker
• Positive Sentiment: Jensen Huang’s upbeat AI chip outlook at GTC boosts expectations for foundry demand (NVIDIA is a key TSMC customer), which directly supports TSMC’s revenue and capacity utilization. Nvidia Rises On Chief Huang’s Massive AI Chip Sales Outlook
• Positive Sentiment: Reports that Google’s TPU demand is surging amid a race for TSMC capacity imply sustained large-scale orders from hyperscalers—supportive for utilization and pricing power. Nvidia Rubin GPU Faces Possible Delay As HBM4 Supply Falls Short, While Google TPU Demand Surges
• Positive Sentiment: Unusual options activity — large buys of calls — signals speculative bullish positioning that can amplify short-term upside as momentum traders pile in.
• Positive Sentiment: Some analysts still model ~20% upside for TSMC despite geopolitical volatility, reinforcing a constructive consensus view among growth investors. What’s Going On With Taiwan Semiconductor Stock Tuesday?
• Neutral Sentiment: Analysis arguing the “TSMC AI bottleneck” thesis is maturing, not breaking, suggests demand remains structural but that execution and capex timing will determine outcomes—important context but not an immediate catalyst. TSMC and the AI Bottleneck: Why the Thesis Is Maturing, Not Breaking
• Negative Sentiment: Geopolitical/supply‑chain risk: analysts warn a helium shortage tied to disruptions around the Strait of Hormuz could hit semiconductor manufacturing inputs and raise disruption risk for TSMC’s fabs. Nvidia, TSMC Are Dangerously Exposed To A Hidden War Risk
• Negative Sentiment: Competitive risk from cloud/tech companies developing in‑house AI accelerators (e.g., Microsoft’s Maia 200) and China’s push to move domestic fabs toward 7nm could pressure long‑term pricing and mix for TSMC. Microsoft (MSFT)’s AI Chip Crosses Analyst Radar China ‘Homegrown’ Gamble: Can New 7nm Chips Finally Replace Nvidia, TSMC?
• Negative Sentiment: Supply bottlenecks in next‑gen memory (HBM4) could delay customer product launches (e.g., Nvidia’s Rubin), temporarily reducing near‑term wafer demand for TSMC. Nvidia Rubin GPU Faces Possible Delay As HBM4 Supply Falls Short

Wall Street Analyst Weigh In

TSM has been the topic of several research reports. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings cut Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, March 5th. Argus upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. Four research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Trading Up 1.7%

The firm has a 50-day moving average of $347.35 and a two-hundred day moving average of $307.18. The firm has a market capitalization of $1.79 trillion, a P/E ratio of 32.49, a P/E/G ratio of 0.93 and a beta of 1.29. The company has a current ratio of 2.62, a quick ratio of 2.42 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be paid a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 28.36%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently bought and sold shares of the company. Childress Capital Advisors LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 145.3% during the third quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock worth $891,000 after buying an additional 1,891 shares during the period. Shannon River Fund Management LLC acquired a new position in Taiwan Semiconductor Manufacturing in the third quarter valued at $2,430,000. Vanguard Personalized Indexing Management LLC boosted its position in 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 valued at $28,470,000 after acquiring an additional 8,738 shares during the last quarter. Hantz Financial Services Inc. boosted its position in Taiwan Semiconductor Manufacturing by 28.6% during the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock valued at $10,394,000 after acquiring an additional 8,284 shares during the last quarter. Finally, Hollencrest Capital Management grew its holdings in Taiwan Semiconductor Manufacturing by 125.3% during the 3rd quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock worth $1,457,000 after acquiring an additional 2,901 shares during the period. 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.