Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.8% – Should You Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 1.8% during trading on Friday . The company traded as high as $324.77 and last traded at $323.7070. 12,284,838 shares were traded during mid-day trading, a decline of 15% from the average session volume of 14,406,006 shares. The stock had previously closed at $318.01.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Company reported stronger-than-expected December/Q4 revenue and a large full‑year 2025 revenue gain, driven by AI chip demand and big customers such as Nvidia — supports upside to near‑term results and sentiment. TSMC posts Q4 revenue of $1046.08 billion, above forecasts
• Positive Sentiment: TSMC reported a roughly 31.6% surge in 2025 revenue (despite a December dip) reinforcing that AI-related capacity is filling quickly — a clear demand signal for advanced-node services. TSMC Posts 31.6% Surge in 2025 Revenue Despite December Dip
• Positive Sentiment: TSMC has started 2nm production — a material milestone that expands its lead in cutting‑edge nodes and supports long‑term pricing power for AI chips. Taiwan Semiconductor Started 2nm Chip Production. Time to Buy?
• Positive Sentiment: Several sell‑side firms and analysts remain bullish, raising price targets and reiterating buy ratings — supports investor demand and fund inflows. Taiwan Semiconductor (TSM) Stock: Wall Street Raises Price Targets as Shares Hit Record Highs
• Neutral Sentiment: TSMC’s full earnings release and guidance are upcoming (earnings season focus around Jan. 15); monthly updates have been positive but investors will watch guidance for 2026 cadence. Dear Taiwan Semi Stock Fans, Mark Your Calendars for January 15
• Negative Sentiment: Risk: a Seeking Alpha note flags memory (HBM/DRAM/NAND) inflation — constrained HBM supply could spike DRAM/NAND prices, push up handset prices and cool smartphone demand (about 30% of TSMC revenue), potentially weakening 2026 growth and guidance. TSMC Q4 Preview: Bullish, But Memory Inflation Could Break The 2026 Growth Story
• Negative Sentiment: Market commentary raises the question of an AI‑driven valuation premium and whether current revenue gains already price in peak AI spending — watch margins, capex cadence and customer order patterns for signs of a re‑rating. TSMC Stock Rises After Bumper Sales. What That Says About a Potential AI Bubble.

Wall Street Analyst Weigh In

TSM has been the topic of several recent analyst reports. Susquehanna increased their target price on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a “positive” rating in a research note on Friday, October 10th. Needham & Company LLC reiterated a “buy” rating and issued a $360.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, October 27th. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research note on Friday, October 17th. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Finally, Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Eight analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and a consensus target price of $355.00.

Taiwan Semiconductor Manufacturing Stock Up 1.8%

The stock has a 50-day simple moving average of $295.56 and a two-hundred day simple moving average of $270.09. The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The firm has a market cap of $1.68 trillion, a PE ratio of 33.20, a P/E/G ratio of 0.92 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.34% and a net margin of 43.72%. Analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 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, April 9th. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. The ex-dividend date is Tuesday, March 17th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 dividend on an annualized basis and a yield of 1.2%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 25.74%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently made changes to their positions in the business. Fisher Asset Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 1.0% during the third quarter. Fisher Asset Management LLC now owns 17,833,127 shares of the semiconductor company’s stock valued at $4,980,614,000 after buying an additional 168,171 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in shares of Taiwan Semiconductor Manufacturing by 3.6% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company’s stock valued at $4,401,448,000 after acquiring an additional 541,047 shares during the last quarter. Bank of America Corp DE boosted its holdings in Taiwan Semiconductor Manufacturing by 0.9% during the 3rd quarter. Bank of America Corp DE now owns 14,935,893 shares of the semiconductor company’s stock valued at $4,171,445,000 after acquiring an additional 130,173 shares during the period. Jennison Associates LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 4.5% during the 3rd quarter. Jennison Associates LLC now owns 12,591,542 shares of the semiconductor company’s stock valued at $3,516,692,000 after acquiring an additional 544,750 shares during the period. Finally, Alliancebernstein L.P. grew its position in Taiwan Semiconductor Manufacturing by 2.2% during the 3rd quarter. Alliancebernstein L.P. now owns 10,687,037 shares of the semiconductor company’s stock worth $2,984,783,000 after acquiring an additional 229,237 shares during the last quarter. 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.