Taiwan Semiconductor Manufacturing’s (TSM) Buy Rating Reaffirmed at DA Davidson

Taiwan Semiconductor Manufacturing (NYSE:TSM)‘s stock had its “buy” rating reissued by investment analysts at DA Davidson in a research note issued to investors on Friday, Benzinga reports. They currently have a $500.00 price objective on the semiconductor company’s stock. DA Davidson’s target price points to a potential upside of 21.02% from the company’s previous close.

A number of other equities research analysts have also recently issued reports on the stock. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. TD Cowen lifted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Sanford C. Bernstein boosted their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Finally, Needham & Company LLC increased their target price on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of Taiwan Semiconductor Manufacturing stock traded down $9.10 on Friday, reaching $413.15. The stock had a trading volume of 16,622,028 shares, compared to its average volume of 13,099,250. 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 business’s 50-day moving average price is $434.85 and its two-hundred day moving average price is $417.14. The stock has a market cap of $2.14 trillion, a P/E ratio of 29.81, a price-to-earnings-growth ratio of 0.89 and a beta of 1.37. Taiwan Semiconductor Manufacturing has a fifty-two week low of $266.82 and a fifty-two week high of $487.47.

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

Insider Activity

In other news, VP Bor-Zen Tien acquired 1,000 shares of the 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 completion of the transaction, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Lipen Yuan bought 350 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was 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 directly owned 2,000 shares of the company’s stock, valued at $147,160. This represents a 21.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 16,043 shares of company stock worth $1,185,746. Company insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently made changes to their positions in TSM. Cooper Financial Group increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% in the third quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company’s stock valued at $2,880,000 after buying an additional 22 shares during the period. Dickmeyer Boyce Financial Management Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 0.7% during the third quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company’s stock worth $1,578,000 after acquiring an additional 23 shares during the last quarter. Plan A Wealth LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 0.9% in the third quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company’s stock worth $1,248,000 after acquiring an additional 24 shares during the period. Twin City Private Wealth LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% in the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after acquiring an additional 25 shares during the period. Finally, Graves Light Lenhart Wealth Inc. boosted its holdings in Taiwan Semiconductor Manufacturing by 3.4% in the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after acquiring an additional 25 shares during the last quarter. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

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.