Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.2% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were up 1.2% during mid-day trading on Friday . The company traded as high as $435.37 and last traded at $433.0910. 10,474,495 shares traded hands during trading, a decline of 22% from the average daily volume of 13,397,439 shares. The stock had previously closed at $428.03.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported August 2026 revenue of NT$514.81 billion, approximately $16.35 billion, up 53.3% year over year and 10.1% from July. The record result, driven by strong orders from hyperscalers and enterprise customers, indicates that AI-chip demand remains robust and TSMC’s production capacity is operating near full utilization. TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip Demand
• Positive Sentiment: The revenue surge is favorable for major customers such as Nvidia because it suggests TSMC can continue supporting high-performance computing and AI-accelerator production. Tight advanced-packaging and foundry capacity also strengthens TSMC’s pricing power and supports its exceptionally high margins. TSMC Just Delivered Fantastic News for Nvidia Shareholders
• Positive Sentiment: TSMC and ASML are collaborating on large-format photomasks for High-NA EUV technology, with potential long-term benefits for advanced-node productivity, manufacturing costs and AI-chip output. TSMC’s Arizona operations and planned global investment may also reduce geographic concentration concerns. TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV
• Positive Sentiment: Analysts remain constructive, with a consensus Buy rating and an average price target of $523.22. Erste Group also modestly raised its fiscal 2027 EPS forecast, while CEO Che-Chia Wei’s recent share purchase provides a small additional signal of management confidence. TSMC CEO Acquires Shares
• Neutral Sentiment: Despite the strong operating data, TSMC shares recently underperformed the broader market because investors may already be pricing in several years of AI growth. Articles identify valuation and future gross-margin performance as key numbers that could determine the stock’s next move. TSMC Price Prediction
• Negative Sentiment: Higher Treasury yields and expectations for a Federal Reserve rate hike are pressuring high-growth technology valuations. The broader retreat in AI-related stocks has limited the market’s response to TSMC’s record sales, while future High-NA EUV benefits will not arrive at scale for several years. Fed Rate Hike Close To A Lock

Analyst Upgrades and Downgrades

Several research firms recently issued reports on TSM. Barclays upped their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Bank of America boosted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. DA Davidson upped their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Finally, Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” 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 two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Up 1.2%

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 firm has a market capitalization of $2.25 trillion, a price-to-earnings ratio of 31.25, a PEG ratio of 0.96 and a beta of 1.39. The stock has a fifty day moving average of $418.99 and a 200-day moving average of $400.34.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. As a group, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Activity

In other news, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, August 18th. The stock was acquired 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 legal filing with the SEC, which is available at this link. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the stock in a transaction on Tuesday, July 21st. The shares were purchased at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the transaction, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This represents a 3.42% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 21,106 shares of company stock worth $1,571,733 over the last three months. 1.11% of the stock is owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of the business. Tiger Global Management LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares during the last quarter. Van ECK Associates Corp raised its stake in shares of Taiwan Semiconductor Manufacturing by 11.1% in 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 acquiring an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd bought a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $495,163,000. T. Rowe Price Investment Management Inc. lifted its holdings in Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after purchasing an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP acquired a new position in Taiwan Semiconductor Manufacturing during the third quarter valued at approximately $360,443,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.

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 leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.