Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 7.1% – Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) rose 7.1% on Thursday . The company traded as high as $465.22 and last traded at $462.8020. Approximately 25,727,913 shares traded hands during trading, an increase of 86% from the average daily volume of 13,834,016 shares. The stock had previously closed at $432.15.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Multiple recent articles argue TSMC remains attractively valued despite its strong run, with bullish takes calling it a buy on AI demand, earnings growth, and momentum. Taiwan Semiconductor: Not Expensive When You Run The Numbers On AI Demand
• Positive Sentiment: Analysts and commentators say TSMC is still benefiting from surging AI chip demand and tight advanced-node capacity, supporting the case for continued growth. Taiwan Semiconductor Manufacturing Company (TSM) Does Not Rule Out Price Rises as Costs Increase
• Neutral Sentiment: Investors are also watching the impact of U.S.-China trade tensions and possible tariff escalation, which could add volatility for global chipmakers. They Forgot to Protect Our Industries With TARIFFS! — Does a Trump Trade War 2.0 Loom?
• Neutral Sentiment: Fresh headlines about U.S. scrutiny of ASML and Taiwan’s potential chip export curbs to China keep geopolitical risk in focus for the semiconductor sector. ASML Draws Fresh China Scrutiny
• Neutral Sentiment: Intel’s new Apple partnership may stir competition in U.S. chip manufacturing, but it also underscores how dominant TSMC remains in advanced foundry production. Trump says Apple to partner with Intel on US chip design, production

Analyst Upgrades and Downgrades

A number of research firms have commented on TSM. Barclays raised their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 22nd. DA Davidson reiterated a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. Two 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 company. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 0.1%

The business has a 50-day moving average of $406.96 and a 200 day moving average of $358.16. The company has a market capitalization of $2.40 trillion, a PE ratio of 38.50, a P/E/G ratio of 1.35 and a beta of 1.38. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. Equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 29.20%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Bor-Zen Tien acquired 2,000 shares of the company’s stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president directly owned 11,051 shares in the company, valued at approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 4,496 shares of company stock worth $304,667 over the last 90 days. 1.11% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in TSM. Tiger Global Management LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% in 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 during the last quarter. Van ECK Associates Corp increased its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at approximately $495,163,000. T. Rowe Price Investment Management Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 168.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after buying an additional 1,313,917 shares during the period. Finally, SurgoCap Partners LP purchased a new stake in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at $360,443,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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.