Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.8% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares rose 1.8% during mid-day trading on Tuesday . The stock traded as high as $419.77 and last traded at $417.4180. Approximately 6,887,574 shares traded hands during trading, a decline of 50% from the average session volume of 13,731,274 shares. The stock had previously closed at $410.12.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: AI demand and advanced-node expansion support the bull case. Taiwan Semiconductor is benefiting from rising demand for AI accelerators, increasing adoption of leading-edge manufacturing and global capacity expansion. Analysts cited continued revenue and earnings momentum and maintained a favorable view of the stock. TSM Rides on AI, Advanced Nodes & Capacity Expansion: Worth a Buy?
• Positive Sentiment: Wall Street sees additional upside. The average analyst price target implies roughly 25% potential appreciation, while broad upward revisions to earnings estimates provide a more meaningful positive signal than the target-price measure alone. How Much Upside is Left in TSMC?
• Positive Sentiment: Nvidia earnings are a near-term catalyst. Because Nvidia is TSMC’s largest customer, a strong report, healthy order book or potential pricing increases could signal higher future foundry revenue and earnings for TSMC. Prediction: TSMC Stock Will Soar Thanks to Nvidia’s Historic Quarter
• Positive Sentiment: Xiaomi adds another 3-nanometer customer. Xiaomi’s Xring O3 smartphone processor is reportedly being manufactured by TSMC using its 3nm process, expanding TSMC’s customer base and providing incremental support for advanced-node utilization. Xiaomi launches new Xring chip and partners with TSMC
• Neutral Sentiment: July financing and governance updates were disclosed. TSMC reported bond-issuance and governance developments in an August Form 6-K filing. The financing may support expansion, but the update did not indicate a material change to the company’s operating outlook. TSMC Details July 2026 Bond Issuance and Governance Updates
• Negative Sentiment: Valuation and semiconductor volatility remain risks. TSMC and broader chip stocks recently faced profit-taking and de-risking ahead of Nvidia’s results, following concerns that AI-chip confidence could weaken. A disappointing Nvidia outlook could pressure TSMC despite its strong long-term fundamentals. TSMC Slides as AI-Chip Confidence Cracks

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on TSM shares. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, August 12th. TD Cowen upped their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Needham & Company LLC increased their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average price target of $524.25.

Taiwan Semiconductor Manufacturing Stock Up 1.8%

The firm’s 50 day simple moving average is $425.06 and its 200-day simple moving average is $394.12. The company has a market cap of $2.16 trillion, a price-to-earnings ratio of 30.12, a P/E/G ratio of 0.96 and a beta of 1.39. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. As a group, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 earnings per share for the current 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 dividend of $1.0854 per share. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 21.43%.

Insider Activity

In other news, VP Shyue-Shyh Lin purchased 1,000 shares of the company’s stock in a transaction dated Tuesday, July 21st. The shares were acquired at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the purchase, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Bor-Zen Tien purchased 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was acquired at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the purchase, the vice president owned 14,051 shares of the company’s stock, valued at approximately $1,026,566.06. This represents a 7.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 17,662 shares of company stock valued at $1,307,491 over the last quarter. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Twin City Private Wealth LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 0.3% during the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after purchasing an additional 25 shares during the last quarter. Graves Light Lenhart Wealth Inc. raised its stake in Taiwan Semiconductor Manufacturing by 3.4% in the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after purchasing an additional 25 shares during the last quarter. OFS Enterprise LLC raised its stake in Taiwan Semiconductor Manufacturing by 4.0% in the 2nd quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock valued at $312,000 after purchasing an additional 25 shares during the last quarter. Wealthcare Capital Partners LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 1.0% in the 2nd quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock valued at $1,244,000 after purchasing an additional 25 shares in the last quarter. Finally, Elser Financial Planning Inc lifted its holdings in Taiwan Semiconductor Manufacturing by 2.4% in the 2nd quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company’s stock valued at $516,000 after purchasing an additional 25 shares in the last quarter. Institutional investors and hedge funds 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.