Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1% After Analyst Upgrade

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares rose 1% during trading on Monday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $409.89 and last traded at $402.4870. 11,608,679 shares changed hands during trading, a decline of 17% from the average daily volume of 14,062,254 shares. The stock had previously closed at $398.37.

TSM has been the topic of a number of other reports. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday. Susquehanna raised their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. TD Cowen lifted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a report on Saturday. Finally, Needham & Company LLC boosted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Three investment 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 stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus price target of $490.00.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction dated 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Lipen Yuan acquired 1,000 shares of the firm’s stock in a transaction on Monday, June 22nd. The shares were bought at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the acquisition, the vice president directly owned 5,000 shares of the company’s stock, valued at approximately $395,950. This represents a 25.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have acquired 6,857 shares of company stock worth $512,334. Corporate insiders own 1.11% of the company’s stock.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reportedly plans to raise chipmaking prices by 5% to 10% in 2027 for both advanced and mature nodes, which supports revenue and margin expansion. TSMC to raise chipmaking prices by up to 10% in 2027, Nikkei Asia reports
• Positive Sentiment: Multiple reports point to durable AI chip demand and stronger-than-expected quarterly results, reinforcing the view that TSMC remains a key beneficiary of the AI buildout. Bull of the Day: Taiwan Semi (TSM)
• Positive Sentiment: Chip stocks broadly rebounded after last week’s selloff, adding sector support to TSMC’s move. Chip stocks extend global rebound following last week’s rout
• Positive Sentiment: Analysts continue to highlight TSMC’s strong AI exposure, with some calling it a buying opportunity after the post-earnings pullback. What’s Going on With Taiwan Semiconductor Stock?
• Neutral Sentiment: Investor attention is also being driven by TSMC’s expanding Arizona investment and long-term capex plans, which signal growth but may pressure near-term costs. TSMC sees long-term AI chip demand as Arizona investment expands to $265 billion
• Negative Sentiment: Some commentary warns that higher U.S. spending and construction challenges could weigh on margins and slow expansion, creating a risk investors are still watching. TSMC (TSM) Stock Drops 7% Despite Record Quarter — Why Investors Are Concerned

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of TSM. Brighton Jones LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after purchasing an additional 1,892 shares in the last quarter. Gamco Investors INC. ET AL bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth about $701,000. Bank of Nova Scotia increased its position in shares of Taiwan Semiconductor Manufacturing by 12.8% during the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after purchasing an additional 1,784 shares in the last quarter. FWL Investment Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 26.5% during the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 53 shares in the last quarter. Finally, Main Street Financial Solutions LLC bought a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $270,000. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Stock Up 5.7%

The stock has a market capitalization of $2.20 trillion, a P/E ratio of 30.67, a P/E/G ratio of 0.94 and a beta of 1.36. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The firm’s fifty day moving average is $427.31 and its 200-day moving average is $380.06.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. As a group, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.05 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 given a dividend of $1.1136 per share. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 21.43%.

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.