Taiwan Semiconductor Manufacturing’s (TSM) “Buy” Rating Reaffirmed at DA Davidson

Taiwan Semiconductor Manufacturing (NYSE:TSM)‘s stock had its “buy” rating reiterated by equities researchers at DA Davidson in a research note issued to investors on Friday, Benzinga reports. They presently have a $500.00 price objective on the semiconductor company’s stock. DA Davidson’s price target points to a potential upside of 21.02% from the stock’s current price.

Several other equities analysts have also issued reports on the company. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Needham & Company LLC boosted 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. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price objective for the company. TD Cowen boosted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Finally, Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Trading Down 2.2%

Shares of Taiwan Semiconductor Manufacturing stock traded down $9.10 during trading on Friday, hitting $413.15. 16,622,028 shares of the company were exchanged, compared to its average volume of 13,099,250. The firm has a market capitalization of $2.14 trillion, a P/E ratio of 29.81, a price-to-earnings-growth ratio of 0.89 and a beta of 1.37. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The firm’s fifty day moving average price is $434.85 and its 200 day moving average price is $417.14. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. The company had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. As a group, sell-side analysts expect that Taiwan Semiconductor Manufacturing will post 16.60 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 1,000 shares of the business’s stock in a transaction on Tuesday, July 21st. The shares were purchased at an average cost of $74.13 per share, with a total value of $74,130.00. Following the transaction, the vice president directly owned 30,269 shares of the company’s stock, valued at $2,243,840.97. This represents a 3.42% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien acquired 1,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was bought at an average cost of $73.06 per share, with a total value of $73,060.00. Following the acquisition, the vice president owned 14,051 shares in the company, valued at $1,026,566.06. The trade was a 7.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 16,043 shares of company stock valued at $1,185,746 in the last three months. 1.11% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in the stock. Tiger Global Management LLC boosted its holdings 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 buying an additional 1,839,600 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 1.1% in the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock valued at $1,131,025,000 after buying an additional 40,842 shares during the last quarter. Sei Investments Co. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 11.8% in the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after buying an additional 274,389 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in shares of 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 valued at $636,077,000 after buying an additional 1,313,917 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 40.5% in the 4th quarter. Hsbc Holdings PLC now owns 1,865,064 shares of the semiconductor company’s stock valued at $569,227,000 after buying an additional 537,539 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.