Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Breaks Above 50-Day Moving Average – Time to Sell?

Posted by George Bondi on Oct 28th, 2026

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s share price passed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $434.34 and traded as high as $438.58. Taiwan Semiconductor Manufacturing shares last traded at $437.1240, with a volume of 8,999,261 shares changing hands.

More Taiwan Semiconductor Manufacturing News

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

Positive Sentiment: TSMC’s third-quarter 2026 results exceeded expectations, with earnings per share of $4.60 versus the $4.45 consensus and revenue of $46.72 billion, up 41.2% year over year. Management highlighted surging demand for AI accelerators, raised its revenue outlook and continued aggressive expansion of advanced-node and packaging capacity. TSM Q3 Earnings Call Highlights Strong AI Demand and Expansion
Positive Sentiment: Reports that TSMC may raise prices for advanced CoWoS packaging by as much as 20%, while increasing leading-edge wafer prices by an estimated 3% to 6% in 2027, point to significant pricing power. Strong demand and constrained capacity could help offset the company’s heavy capital spending and support margins. Taiwan Semiconductor Flexes Pricing Power on AI’s Frontline
Positive Sentiment: Several analyst commentaries view TSMC as a core “toll road” for the AI economy, citing its dominant foundry position, roughly 51.5% net margin and consensus price targets implying further upside. Comparisons with Micron, Intel and Apple also emphasize TSMC’s scale and strategic importance to advanced-chip production. TSMC: The Toll Road of the AI Economy Is on Sale
Neutral Sentiment: TSMC is maintaining an estimated $60 billion to $64 billion 2026 capital-expenditure plan and targeting substantially higher advanced-packaging capacity. The investment should support long-term growth, but near-term margins may remain pressured as the 2-nanometer process ramps.
Negative Sentiment: Critics argue that TSMC’s strong results may already be reflected in the stock after a multiyear rally. Concerns include a forward P/E near 28, cash-flow valuation, rising expansion costs and the possibility that AI demand expectations are becoming too optimistic. Taiwan Semiconductor Manufacturing Stock Looks Pricey Against Cash Flow
Negative Sentiment: Recent pullbacks in TSMC and other AI chip stocks despite record revenue have highlighted crowded-trade and valuation risks. Higher packaging prices could also increase costs for customers such as Nvidia and AMD, potentially creating downstream pressure on hardware demand. The Last Month Exposed the Risk Narrative Between Nvidia and Taiwan Semiconductor

Analyst Upgrades and Downgrades

TSM has been the topic of a number of analyst reports. 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. TD Cowen upped their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, October 21st. Finally, Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Buy” and an average price target of $528.78.

Check Out Our Latest Analysis on Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Price Performance

The stock has a 50 day simple moving average of $434.34 and a 200 day simple moving average of $397.98.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last released its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating analysts’ consensus estimates of $4.45 by $0.15. The company had revenue of $46.72 billion for the quarter, compared to analysts’ expectations of $45.67 billion. During the same period last year, the company posted $2.92 EPS. The business’s revenue for the quarter was up 41.2% compared to the same quarter last year. As a group, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan acquired 350 shares of the stock in a transaction dated Tuesday, August 18th. The stock was purchased at an average cost of $73.58 per share, with a total value of $25,753.00. Following the completion of the purchase, the vice president owned 2,000 shares in the company, valued at approximately $147,160. The trade was a 21.21% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Bor-Zen Tien bought 1,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were purchased at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the acquisition, the vice president owned 14,051 shares of the company’s stock, valued at $1,026,566.06. This trade represents a 7.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 7,043 shares of company stock valued at $530,986 in the last three months. 1.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Tiger Global Management LLC raised its position in Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares during the last quarter. Sei Investments Co. lifted its holdings in Taiwan Semiconductor Manufacturing by 11.8% in the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock worth $875,802,000 after buying an additional 274,389 shares during the period. Bessemer Group Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 7.9% in the 1st quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company’s stock worth $602,147,000 after buying an additional 130,602 shares during the last quarter. Assenagon Asset Management S.A. grew its position in shares of Taiwan Semiconductor Manufacturing by 67.2% in the 3rd quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock worth $783,513,000 after buying an additional 690,523 shares during the last quarter. Finally, AMF Tjanstepension AB grew its position in shares of Taiwan Semiconductor Manufacturing by 6.4% in the 1st quarter. AMF Tjanstepension AB now owns 1,632,738 shares of the semiconductor company’s stock worth $551,784,000 after buying an additional 98,123 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

(Get Free Report)

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.