Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 3.4% After Dividend Announcement

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 3.4% during mid-day trading on Wednesday following a dividend announcement from the company. The stock traded as high as $379.58 and last traded at $374.2470. 18,585,526 shares changed hands during trading, an increase of 21% from the average session volume of 15,299,913 shares. The stock had previously closed at $361.91.

The newly announced dividend which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be paid a $0.9503 dividend. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 23.57%.

Wall Street Analyst Weigh In

TSM has been the topic of a number of recent analyst reports. Freedom Capital raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research note on Friday, January 16th. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Three equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Trading Down 1.5%

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 stock has a market capitalization of $1.91 trillion, a P/E ratio of 34.58, a PEG ratio of 1.05 and a beta of 1.31. The firm’s 50-day simple moving average is $320.35 and its 200 day simple moving average is $287.57.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The company had revenue of $32.50 billion during the quarter. Equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Seeking Alpha argues TSM has entered an AI era where AI chips now outpace mobile handsets; Nvidia has surpassed Apple as TSM’s largest customer, implying stronger pricing power, higher demand and structurally better margins going forward. Taiwan Semiconductor: Transition From An iPhone To An AI Era
• Positive Sentiment: TSM reported the highest monthly sales in company history, which management linked to sustained AI adoption—this confirms continuing strong demand from major AI customers (notably Nvidia). TSMC CEO C.C. Wei Just Delivered Fantastic News for Nvidia Investors
• Positive Sentiment: Benzinga notes TSM hit a 52‑week high after Wedbush reiterated an Outperform rating following strong sales—support from a major wirehouse analyst helps near‑term sentiment and flows. Taiwan Semiconductor Stock Hits 52-Week High
• Positive Sentiment: Sector research (Zacks) and industry tallies show semiconductor sales surged in 2025 on AI-driven logic and memory growth—TSM is a primary beneficiary of that cyclical upswing. 4 Stocks to Boost Your Portfolio on Solid Semiconductor Sales Growth
• Positive Sentiment: Investor letters and fund commentary (e.g., Baron Fund) point to a demand boom for TSM‑exposed names, reinforcing momentum among institutional holders. Demand Boom Sent Taiwan Semiconductor Higher
• Neutral Sentiment: TSM declared a quarterly dividend of $0.9503 per share (annualized yield ~1.0%), payable July 9 with a June 11 record date—a modest income signal but not a major catalyst given the low yield.
• Neutral Sentiment: Macro/flow commentary (MarketBeat) says money is rotating from software into AI infrastructure (chips, testing, packaging, power). That rotation favors TSM long term, though it also shifts attention to broader supply‑chain winners and durability factors.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently modified their holdings of the stock. Brighton Jones LLC lifted its stake in Taiwan Semiconductor Manufacturing by 20.9% during the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after buying an additional 1,892 shares in the last quarter. Ignite Planners LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 4.7% during the second quarter. Ignite Planners LLC now owns 2,610 shares of the semiconductor company’s stock valued at $627,000 after acquiring an additional 116 shares during the period. Bayforest Capital Ltd purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at approximately $149,000. Harbour Investments Inc. boosted its stake in Taiwan Semiconductor Manufacturing by 0.6% in the 2nd quarter. Harbour Investments Inc. now owns 11,340 shares of the semiconductor company’s stock worth $2,568,000 after purchasing an additional 66 shares during the period. Finally, Private Wealth Asset Management LLC grew its position in Taiwan Semiconductor Manufacturing by 64.2% during the 2nd quarter. Private Wealth Asset Management LLC now owns 767 shares of the semiconductor company’s stock worth $174,000 after purchasing an additional 300 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.