Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3.2% – Time to Sell?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were down 3.2% during mid-day trading on Wednesday. The stock traded as low as $428.06 and last traded at $430.6860. Approximately 14,487,794 shares changed hands during mid-day trading, an increase of 11% from the average session volume of 13,030,028 shares. The stock had previously closed at $445.12.

More Taiwan Semiconductor Manufacturing News

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%; both figures exceeded analyst expectations. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: Management guided for fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the approximately $48.8 billion consensus estimate, reinforcing that demand for advanced AI and high-performance-computing chips remains strong. TSMC earnings report
• Positive Sentiment: Investors received additional long-term growth signals: 2026 revenue is expected to rise about 44%, while annual 2-nanometer capacity is expected to more than double in 2027. Advanced technologies already represent about 79% of wafer revenue. Three key takeaways for long-term investors
• Neutral Sentiment: TSMC is reportedly exploring additional Texas capacity, including potential participation in Elon Musk’s proposed “Terafab” complex. Separately, Taiwan is backing industrial parks for Nvidia suppliers, which could expand the U.S. semiconductor ecosystem but may increase execution and geographic-expansion demands. TSMC and Elon Musk’s Terafab talks
• Negative Sentiment: The main concern is spending: TSMC may invest as much as $64 billion in capital expenditures this year. Although the investment supports future AI capacity, investors worry about oversupply, execution risk, and whether customer demand will justify the enormous buildout. TSMC’s $64 billion spending plan
• Negative Sentiment: TSM is also being pressured by a wider chip-sector selloff tied to inflation, higher interest rates, and concerns about debt financing for AI infrastructure companies such as CoreWeave and Oracle. Strong results were therefore insufficient to overcome profit-taking and fears that the AI trade may be overextended. Chip stocks tumble on AI investment worries

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a “buy” rating and a $515.00 price objective on the stock. TD Cowen increased their price objective 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. Susquehanna boosted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Sanford C. Bernstein upped their price target 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. Finally, Bank of America upped their price target 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. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus price target of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The company has a market cap of $2.14 trillion, a price-to-earnings ratio of 29.74, a PEG ratio of 0.89 and a beta of 1.37. The business has a fifty day moving average price of $434.85 and a 200 day moving average price of $417.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (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 $46.87 billion for the quarter. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 24.96%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan bought 350 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were purchased at an average price of $73.58 per share, with a total value of $25,753.00. Following the completion of the purchase, the vice president owned 2,000 shares in the company, valued at $147,160. This represents a 21.21% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares of the company’s stock, valued at approximately $1,026,566.06. This represents a 7.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 16,043 shares of company stock worth $1,185,746 over the last quarter. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. ARS Wealth Advisors Group LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 2.8% in the third quarter. ARS Wealth Advisors Group LLC now owns 1,151 shares of the semiconductor company’s stock worth $525,000 after acquiring an additional 31 shares in the last quarter. Cardinal Capital Management Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.0% in the 3rd quarter. Cardinal Capital Management Inc. now owns 108,640 shares of the semiconductor company’s stock worth $49,560,000 after purchasing an additional 1,076 shares in the last quarter. Cyndeo Wealth Partners LLC grew its position in Taiwan Semiconductor Manufacturing by 17.8% in the 3rd quarter. Cyndeo Wealth Partners LLC now owns 73,273 shares of the semiconductor company’s stock valued at $33,426,000 after purchasing an additional 11,051 shares during the period. Selective Wealth Management Inc. acquired a new stake in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at $203,000. Finally, Perryman Financial Advisory Inc. AD grew its position in Taiwan Semiconductor Manufacturing by 7.2% in the 3rd quarter. Perryman Financial Advisory Inc. AD now owns 3,275 shares of the semiconductor company’s stock valued at $1,494,000 after purchasing an additional 221 shares during the period. 16.51% of the stock is owned by institutional investors and hedge funds.

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.