Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.1% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price fell 2.1% during trading on Friday . The stock traded as low as $417.32 and last traded at $418.54. 8,852,495 shares traded hands during trading, a decline of 35% from the average daily volume of 13,658,654 shares. The stock had previously closed at $427.30.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is advancing its A14 process technology for artificial-intelligence applications, emphasizing higher performance and improved power efficiency. Its A13 and A12 nodes are also extending the company’s next-generation manufacturing roadmap, supporting future demand from AI-chip designers. How TSMC is Advancing its A14 Technology Roadmap for AI Transformation
• Positive Sentiment: TSMC is reportedly winning additional 3-nanometer orders from Xiaomi, including production of the Xring O3 processor. The deal broadens TSMC’s advanced-chip customer base into AI-enabled consumer devices and autonomous-driving applications. Why Is Taiwan Semiconductor Manufacturing (TSM) Winning More 3nm AI Chip Work?
• Positive Sentiment: Billionaire investor Stanley Druckenmiller and another hedge fund reportedly bought TSMC shares, adding institutional validation to the view that TSMC remains a high-quality way to participate in AI growth. Stanley Druckenmiller Just Bought Taiwan Semiconductor Stock
• Positive Sentiment: TSMC and Sony’s planned $4.7 billion joint venture will develop and manufacture next-generation image sensors, with mass production expected in 2029. The project could diversify TSMC’s growth beyond conventional processors. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on AI Image Sensors
• Neutral Sentiment: Analysts continue to identify TSMC as a leading China-related technology investment, citing strong regional technology momentum and multiple growth drivers. Top China Tech Plays Worth Adding to Your Portfolio Right Now
• Negative Sentiment: TSMC’s reported 44.7% July revenue growth has raised the bar for major customer Nvidia’s upcoming outlook. Exceptionally high expectations increase the risk of disappointment if future guidance is merely solid rather than outstanding. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry

Wall Street Analyst Weigh In

TSM has been the subject of several recent research reports. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. TD Cowen upped their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research note on Friday, July 17th. Sanford C. Bernstein raised their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a report on Tuesday, August 11th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Stock Down 2.1%

The stock has a market capitalization of $2.17 trillion, a P/E ratio of 30.20, a P/E/G ratio of 0.96 and a beta of 1.38. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock’s 50 day simple moving average is $423.88 and its 200 day simple moving average is $395.94.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. As a group, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president owned 6,000 shares in the company, valued at $447,000. The trade was a 20.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction dated Monday, August 3rd. The stock was purchased 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 in the company, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 17,662 shares of company stock valued at $1,307,491 over the last three months. 1.11% of the stock is owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in TSM. Cedar Mountain Advisors LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares during the period. Markowski Investments acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $33,000. Quattro Advisors LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $27,000. Finally, Evolution Wealth Management Inc. raised its stake in Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 67 shares during the period. 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.