Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price rose 2.8% during mid-day trading on Monday. The stock traded as high as $487.47 and last traded at $486.0440. 10,816,939 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 13,139,375 shares. The stock had previously closed at $472.78.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Elon Musk confirmed that TSMC is in early discussions about Terafab, a proposed Texas chipmaking venture intended to supply Tesla, SpaceX and xAI. Although the talks remain unconfirmed and details are limited, investors viewed the potential partnership as a major new customer opportunity. Musk confirms talks with TSMC over Terafab chip plant
• Positive Sentiment: The Terafab reports reinforced expectations that TSMC’s advanced manufacturing capacity will remain heavily utilized, alongside demand from Nvidia, Apple and other major chip designers. This helped drive the stock to another record. TSMC hits another record but Nvidia and Apple demand may become its next problem
• Positive Sentiment: Investor commentary ahead of the October 15 quarterly results remains bullish, with expectations for sustained artificial-intelligence chip demand and strong execution supporting the case for TSM stock. I’m Loading Up on Taiwan Semiconductor Ahead of Oct. 15 Earnings
• Neutral Sentiment: TSMC’s overseas factory expansion could strengthen geographic diversification and customer relationships, but new facilities may initially generate lower margins and higher costs. Investors are weighing that risk against the company’s highly profitable Taiwan operations. How Much Overseas Factory Cost Can TSMC’s Valuation Absorb?
• Negative Sentiment: Despite strong current demand, reliance on large customers such as Nvidia and Apple creates a potential vulnerability if their orders or broader AI-chip spending slows. TSMC’s elevated valuation makes any disappointment in demand or margins more consequential. TSMC hits another record but Nvidia and Apple demand may become its next problem

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 22nd. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. DA Davidson raised their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Finally, Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Trading Up 2.8%

The business has a 50-day moving average price of $425.59 and a 200-day moving average price of $409.69. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.52 trillion, a P/E ratio of 35.07, a PEG ratio of 1.05 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The firm had revenue of $39.89 billion during the quarter. Analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is 25.25%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were acquired at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the transaction, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Shyue-Shyh Lin purchased 1,000 shares of the business’s stock in a transaction on Tuesday, July 21st. The shares were acquired at an average price of $74.13 per share, with a total value of $74,130.00. Following the purchase, the vice president owned 30,269 shares of the company’s stock, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have acquired 16,106 shares of company stock worth $1,186,463. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently bought and sold shares of the business. Cedar Mountain Advisors LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares in the last quarter. Markowski Investments bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter worth approximately $33,000. Hilton Head Capital Partners LLC acquired a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $27,000. Evolution Wealth Management Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after buying an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after buying an additional 36 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.