Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report) shares dropped 2% during trading on Wednesday. The company traded as low as $471.30 and last traded at $472.6380. 7,128,988 shares changed hands during trading, a decline of 45% from the average daily volume of 13,079,472 shares. The stock had previously closed at $482.30.
Key Headlines Impacting Taiwan Semiconductor Manufacturing
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: Analysts remain constructive: Barclays raised its price target from $650 to $665 while maintaining an “overweight” rating, and Goldman Sachs lifted its target to TWD 3,300. Taiwan Semiconductor Manufacturing Stock Gets Price Target Bump from Barclays
- Positive Sentiment: Underlying AI-related demand remains a major support for TSMC. Analysts expect strong third-quarter results, continued growth in advanced-node manufacturing, and progress in the 2-nanometer production ramp. The company’s October 15 earnings report will be closely watched for revenue growth and margin guidance. TSMC Q3 Earnings: Strong AI Demand Sets the Bar High for Growth
- Positive Sentiment: Recent investment coverage continues to identify TSMC as a core beneficiary of the AI semiconductor cycle, citing its foundry leadership, roughly 45% net margin, and dependable earnings growth. 4 Top Chip Stocks With Dependable Earnings to Ride the AI Boom
- Neutral Sentiment: Intel CEO Lip-Bu Tan confirmed Intel will remain involved in Terafab. This reduces the possibility that TSMC would displace Intel, but it also suggests TSMC’s potential involvement could be limited to a leasing or supply-related role. Intel Stays in Musk’s Terafab Chip Venture Despite TSMC Talks
- Negative Sentiment: Musk’s clarification removed the prospect of TSMC operating Terafab, weakening expectations for a potentially significant new customer, strategic partnership, or U.S. manufacturing opportunity. That disappointment is the primary near-term pressure on TSM stock. Elon Musk Rules Out Potential TSMC Role in Terafab Operations
Wall Street Analyst Weigh In
A number of brokerages have commented on TSM. TD Cowen increased their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the company an “overweight” rating in a report on Tuesday. Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Finally, Bank of America raised their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus target price of $524.89.
Taiwan Semiconductor Manufacturing Stock Performance
The company has a market capitalization of $2.45 trillion, a price-to-earnings ratio of 34.10, a price-to-earnings-growth ratio of 1.08 and a beta of 1.37. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a 50-day simple moving average of $429.10 and a 200-day simple moving average of $411.68.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 0.9%. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 24.96%.
Insider Transactions at Taiwan Semiconductor Manufacturing
In related news, VP Shyue-Shyh Lin bought 1,000 shares of the business’s stock in a transaction dated Tuesday, July 21st. The shares were acquired at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the purchase, the vice president owned 30,269 shares in the company, valued at $2,243,840.97. This trade represents a 3.42% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Lipen Yuan purchased 350 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The shares were bought at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the transaction, the vice president directly owned 2,000 shares of the company’s stock, valued at approximately $147,160. The trade was a 21.21% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 14,559 shares of company stock valued at $1,067,931. Insiders own 1.11% of the company’s stock.
Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing
A number of institutional investors have recently made changes to their positions in the company. Tiger Global Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth 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 in the last quarter. Corient Private Wealth LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 330.0% during the 4th quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock valued at $481,111,000 after acquiring an additional 1,215,035 shares during the last quarter. Fundsmith LLP acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $548,465,000. Finally, Deutsche Bank AG lifted its position in shares of Taiwan Semiconductor Manufacturing by 94.3% during the 4th quarter. Deutsche Bank AG now owns 2,264,367 shares of the semiconductor company’s stock valued at $688,118,000 after acquiring an additional 1,098,727 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors.
Taiwan Semiconductor Manufacturing Company Profile
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.
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