Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Breaks Below Two Hundred Day Moving Average – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $402.49 and traded as low as $391.50. Taiwan Semiconductor Manufacturing shares last traded at $399.5020, with a volume of 10,704,547 shares.

Top Taiwan Semiconductor Manufacturing Stories

These are some of the TSM stories that stood out recently:

• Positive Sentiment: TSMC reported record October revenue of NT$586.89 billion, up 59.7% year over year. The strong growth points to continued demand for AI chips and supports expectations that the company’s capacity investments can sustain expansion. Article: TSMC Just Booked a Record NT$587 Billion Month
• Neutral Sentiment: NVIDIA’s leadership shake-up is adding uncertainty across chip stocks. TSMC may benefit from serving multiple chip designers, but tighter export controls could create broader industry headwinds. NVIDIA’s November 17 earnings report is a near-term test of AI-chip demand. Article: Checkmate for AI Chips? NVIDIA’s Crisis Opens the Board
• Negative Sentiment: TSMC confirmed that current and former employees’ personal data was exposed through a cloud provider. Reports say hackers are demanding 3 bitcoin over about 46,000 records, raising cybersecurity and reputational concerns. Article: TSMC Confirms Employee Data Leak Through Cloud Provider

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research report on Thursday, October 15th. 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. Barclays lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a research note on Friday, October 16th. TD Cowen boosted 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. Finally, Sanford C. Bernstein increased their target price on shares of Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the company an “outperform” rating in a research note on Wednesday, November 4th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing Stock Performance

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 stock has a market capitalization of $2.07 trillion, a PE ratio of 25.71, a P/E/G ratio of 0.81 and a beta of 1.44. The firm has a fifty day moving average price of $430.12 and a two-hundred day moving average price of $402.49.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.45 by $0.15. The company had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. Taiwan Semiconductor Manufacturing’s revenue was up 41.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.92 EPS. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.36 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 8th. Stockholders of record on Thursday, March 11th will be given a dividend of $1.3663 per share. This represents a $5.47 annualized dividend and a dividend yield of 1.4%. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.0854. The ex-dividend date is Thursday, March 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 22.27%.

Insiders Place Their Bets

In related news, Director Michael R. Splinter purchased 840 shares of the business’s stock in a transaction dated Thursday, November 5th. The shares were purchased at an average cost of $357.00 per share, for a total transaction of $299,880.00. Following the completion of the acquisition, the director owned 8,405 shares in the company, valued at approximately $3,000,585. This trade represents a 11.10% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, November 1st. The stock was bought at an average cost of $71.49 per share, for a total transaction of $71,490.00. Following the purchase, the vice president directly owned 8,000 shares in the company, valued at $571,920. This trade represents a 14.29% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 7,869 shares of company stock valued at $823,771 over the last three months. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently modified their holdings of TSM. Cooper Financial Group boosted its position in Taiwan Semiconductor Manufacturing by 0.3% during the third quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company’s stock valued at $2,880,000 after purchasing an additional 22 shares during the last quarter. Dickmeyer Boyce Financial Management Inc. grew its stake in Taiwan Semiconductor Manufacturing by 0.7% in the third quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company’s stock valued at $1,578,000 after purchasing an additional 23 shares in the last quarter. Whelan Financial grew its stake in Taiwan Semiconductor Manufacturing by 2.3% in the third quarter. Whelan Financial now owns 1,040 shares of the semiconductor company’s stock valued at $474,000 after purchasing an additional 23 shares in the last quarter. Plan A Wealth LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 0.9% during the 3rd quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company’s stock worth $1,248,000 after purchasing an additional 24 shares during the last quarter. Finally, Graves Light Lenhart Wealth Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 3.4% during the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock worth $359,000 after purchasing an additional 25 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics. Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.