Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 5.7% – Should You Buy?

Posted by Geri Gentry on Jul 23rd, 2026

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s share price rose 5.7% during mid-day trading on Tuesday . The company traded as high as $425.40 and last traded at $425.0350. Approximately 18,112,433 shares were traded during mid-day trading, an increase of 29% from the average daily volume of 14,069,820 shares. The stock had previously closed at $402.30.

Taiwan Semiconductor Manufacturing News Summary

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

Positive Sentiment: TSMC’s latest updates reinforce that AI chip demand remains robust, with reports highlighting booming sales and new manufacturing capacity to meet surging orders. Why Is Everyone Talking About Taiwan Semiconductor Stock?
Positive Sentiment: The company’s pricing power looks stronger, as multiple reports say TSMC plans wafer and chip price increases for 2027, which could lift margins and earnings. Taiwan Semi Is Raising Wafer Manufacturing Prices. Why That’s Good News for TSM Stock.
Positive Sentiment: Analysts and commentators are framing TSMC as a core AI infrastructure winner, citing strong revenue growth, expanding profitability, and the company’s central role in the AI build-out. 2 AI Infrastructure Stocks That Could Outperform NVIDIA
Neutral Sentiment: TSMC’s huge expansion plans in the U.S. are being viewed as a long-term strategic move, but they also raise questions about capital intensity and near-term margin trade-offs. TSMC Just Increased Its Investment in America by $100 Billion. Here’s What That Means for the AI Semiconductor Stock Trade.
Neutral Sentiment: Several articles note that TSMC’s rapid spending on new fabs and U.S. expansion could pressure margins for years, which is creating debate around valuation. TSMC’s $200 billion U.S. bet comes with a costly trade-off
Neutral Sentiment: Some coverage says the stock is still attractive on a long-term basis, with bullish calls arguing TSMC remains reasonably valued relative to its growth and strategic importance. Prediction: TSMC Stock Will Outperform the S&P 500 Over the Next Five Years
Negative Sentiment: One key concern is that U.S. political pressure to shift AI chip production to America could squeeze TSMC’s margins, even as it invests heavily to meet those demands. Trump’s push for American-made AI chips hits TSMC’s margins
Negative Sentiment: Another cautious theme is that despite blowout results, some investors remain worried the AI spending boom may not justify TSMC’s valuation after the recent run-up. TSMC Q2: Compounding AI Spending Concerns Hit Stock Valuation

Analyst Ratings Changes

A number of equities analysts recently commented on TSM shares. Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, July 13th. DA Davidson upped their price objective on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, July 17th. TD Cowen lifted their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research report on Friday, July 17th. Bank of America upped their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $490.00.

View Our Latest Stock Analysis on TSM

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The stock has a fifty day moving average price of $427.76 and a two-hundred day moving average price of $380.89. The company has a market cap of $2.19 trillion, a P/E ratio of 30.45, a PEG ratio of 0.99 and a beta of 1.36.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last issued its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%. On average, equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.21 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 21.43%.

Insider Buying and Selling

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value 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 represents a 7.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction on Monday, June 29th. The shares were bought at an average cost of $76.64 per share, for a total transaction of $76,640.00. Following the purchase, the vice president owned 12,051 shares in the company, valued at $923,588.64. This trade represents a 9.05% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 6,857 shares of company stock valued at $512,334 over the last 90 days. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Twin City Private Wealth LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% in the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock valued at $2,479,000 after buying an additional 25 shares during the period. Graves Light Lenhart Wealth Inc. raised its stake in Taiwan Semiconductor Manufacturing by 3.4% during the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock worth $359,000 after buying an additional 25 shares during the period. OFS Enterprise LLC raised its stake in Taiwan Semiconductor Manufacturing by 4.0% during the 2nd quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock worth $312,000 after buying an additional 25 shares during the period. Wealthcare Capital Partners LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 1.0% in the second quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock worth $1,244,000 after acquiring an additional 25 shares in the last quarter. Finally, Elser Financial Planning Inc boosted its holdings in Taiwan Semiconductor Manufacturing by 2.4% in the second quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company’s stock worth $516,000 after acquiring an additional 25 shares in the last quarter. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

(Get Free Report)

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.