DA Davidson Reaffirms “Buy” Rating for Taiwan Semiconductor Manufacturing (NYSE:TSM)

Taiwan Semiconductor Manufacturing (NYSE:TSM)‘s stock had its “buy” rating reaffirmed by analysts at DA Davidson in a research note issued on Friday, Benzinga reports. They currently have a $500.00 price target on the semiconductor company’s stock. DA Davidson’s price target suggests a potential upside of 21.07% from the stock’s previous close.

TSM has been the topic of a number of other reports. Sanford C. Bernstein increased their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Susquehanna increased their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday, July 16th. Bank of America increased their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Barclays restated an “overweight” rating and set a $670.00 price target (up from $665.00) on shares of Taiwan Semiconductor Manufacturing in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 2.2%

NYSE:TSM traded down $9.25 during mid-day trading on Friday, reaching $413.00. The stock had a trading volume of 12,438,518 shares, compared to its average volume of 13,070,980. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market capitalization of $2.14 trillion, a price-to-earnings ratio of 29.80, a price-to-earnings-growth ratio of 0.89 and a beta of 1.37. The stock’s 50 day simple moving average is $434.85 and its two-hundred day simple moving average is $417.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. The business had revenue of $46.87 billion during the quarter. Equities analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.60 EPS for the current year.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. This represents a 20.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Shyue-Shyh Lin acquired 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Sunday, July 19th. The shares were acquired at an average price of $71.71 per share, with a total value of $143,420.00. Following the transaction, the vice president owned 28,269 shares in the company, valued at approximately $2,027,169.99. This represents a 7.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 16,043 shares of company stock worth $1,185,746 in the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the business. Tiger Global Management LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Invesco Ltd. boosted its position in shares of Taiwan Semiconductor Manufacturing by 1.1% during the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock valued at $1,131,025,000 after purchasing an additional 40,842 shares in the last quarter. Sei Investments Co. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 11.8% in the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock worth $875,802,000 after buying an additional 274,389 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after buying an additional 1,313,917 shares during the period. Finally, Hsbc Holdings PLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 40.5% in the fourth quarter. Hsbc Holdings PLC now owns 1,865,064 shares of the semiconductor company’s stock worth $569,227,000 after buying an additional 537,539 shares during the period. Institutional investors own 16.51% of the company’s stock.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported its sixth consecutive record-profit quarter. Third-quarter net income rose approximately 69% year over year to about NT$763 billion, while revenue increased roughly 51% to NT$1.49 trillion. Advanced technologies, including 3-nanometer production, represented 79% of wafer revenue. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: The company issued fourth-quarter revenue guidance of $52.3 billion to $54.3 billion, well above the roughly $48.8 billion analyst consensus. Management also indicated that AI and high-performance-computing demand remains strong, with full-year 2026 revenue growth expected near 44%. TSMC: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: DA Davidson reaffirmed its Buy rating with a $500 price target, while Needham raised its target to $560. Analysts remain bullish on TSMC’s leading-edge manufacturing position and expect annual 2-nanometer capacity to more than double in 2027. TSMC Doubles Down on CapEx as Agentic AI Expands
• Neutral Sentiment: TSMC is reportedly exploring additional U.S. manufacturing opportunities, including potential participation in Elon Musk’s Texas “Terafab” project. Such expansion could improve customer access and supply resilience but would require substantial investment.
• Negative Sentiment: Investors are concerned about TSMC’s planned capital expenditures of up to $64 billion and whether AI-related demand and financing can justify the industry’s rapidly rising investment. These concerns have overshadowed the earnings beat and guidance increase. Why TSMC’s $64B Spending Plan Shouldn’t Deter Investors
• Negative Sentiment: A wider chip-stock selloff, concerns about AI debt financing and a jury verdict affecting Qualcomm and Arm have pressured the semiconductor sector, limiting the positive reaction to TSMC’s results. Chip Selloff Extends

About Taiwan Semiconductor Manufacturing

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.