Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.9% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares dropped 1.9% during trading on Wednesday . The company traded as low as $339.34 and last traded at $339.5570. Approximately 12,473,613 shares changed hands during trading, a decline of 11% from the average daily volume of 13,999,359 shares. The stock had previously closed at $345.98.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: New industry data highlights TSMC’s dominance — the company is said to control about 72% of the global chip foundry market and benefits directly from record AI-driven wafer demand, supporting a strong revenue outlook for 2026. TSMC Claims 72% Of Global Chip Market As AI Demand Hits Record Highs
• Positive Sentiment: Heavy call-option buying and unusual options volume suggest bullish positioning by traders expecting upside or a relief bounce. This buying pressure can amplify near-term upside if sentiment turns positive. Investors Buy High Volume of Call Options on Taiwan Semiconductor Manufacturing (NYSE:TSM)
• Positive Sentiment: Several commentary pieces frame the recent ~13% correction as a buying opportunity — analysts and retail-focused outlets argue the dip improves the risk/reward given TSMC’s long-term AI exposure. TSMC Stock Looks Like a Table-Pounding Gift After That 13% Correction
• Neutral Sentiment: Options strategies like selling puts are being recommended as an income approach to buy TSM at lower effective prices — this signals investor interest but also caution about near-term volatility. TSM Stock: Why Selling Puts Is The Win-Win Play
• Neutral Sentiment: TSMC briefly outpaced market gains in recent sessions, underlining that momentum can still reassert itself despite the pullback. TSMC (TSM) Outpaces Stock Market Gains: What You Should Know
• Negative Sentiment: Comparisons with NVIDIA and other AI-focused names emphasize faster growth and sharper data-center demand for rivals, prompting some investors to rotate capital away from TSM toward higher-growth AI chip plays. NVDA vs. TSM: Which Semiconductor Powerhouse Offers More Upside?
• Negative Sentiment: Geopolitical risks (supply-chain exposure, a possible helium shortage) and competition from new in-house AI chips (e.g., Microsoft’s Maia 200) are recurring concerns that can pressure multiple suppliers including TSMC. Nvidia, TSMC Are Dangerously Exposed To A Hidden War Risk
• Negative Sentiment: Ongoing valuation debate — some coverage flags a relatively rich P/E (and rapid run-up) meaning further downside can occur if AI demand disappoints or multiple compression continues. Taiwan Semiconductor Manufacturing (NYSE:TSM) Share Performance And Valuation Debate

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on TSM shares. UBS Group set a $330.00 target price on Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. Dbs Bank raised shares of Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a report on Friday, January 23rd. Needham & Company LLC increased their target price on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a “buy” rating in a research report on Thursday, January 15th. Finally, Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Four research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Down 1.9%

The company has a market cap of $1.76 trillion, a P/E ratio of 31.88, a PEG ratio of 0.93 and a beta of 1.29. The company has a quick ratio of 2.42, a current ratio of 2.62 and a debt-to-equity ratio of 0.17. The firm has a fifty day moving average price of $347.73 and a 200 day moving average price of $307.99.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. The business had revenue of $30.65 billion for the quarter. Equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be given a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the company. Cornerstone Planning LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $415,000. Rockefeller Capital Management L.P. lifted its holdings in Taiwan Semiconductor Manufacturing by 16.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 872,099 shares of the semiconductor company’s stock valued at $265,024,000 after buying an additional 123,078 shares during the period. Osbon Capital Management LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $243,000. ARP Global Capital Ltd bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $10,260,000. Finally, Meadowbrook Advisors Group LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth $821,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.