Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price was down 6.5% during mid-day trading on Tuesday . The stock traded as low as $434.19 and last traded at $437.13. Approximately 20,290,279 shares changed hands during trading, an increase of 46% from the average session volume of 13,864,187 shares. The stock had previously closed at $467.67.
Taiwan Semiconductor Manufacturing News Roundup
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: Bank of America raised its price target on TSM from $490 to $590 and reiterated a buy rating, signaling continued confidence in the company’s AI-led growth and earnings power.
- Positive Sentiment: Recent coverage highlighted TSMC’s CoWoS advanced packaging as a key bottleneck-busting technology for AI chips, helping keep the company central to the HBM-driven AI buildout. Why TSMC’s CoWoS Role Keeps Taiwan Semiconductor (TSM) Central to the HBM-Driven AI Chip Boom
- Positive Sentiment: TSMC reported May revenue up 30.1% year over year, and year-to-date revenue up 30.0%, reinforcing the view that AI and advanced-node demand remains very strong. Why TSMC’s CoWoS Role Keeps Taiwan Semiconductor (TSM) Central to the HBM-Driven AI Chip Boom
- Positive Sentiment: Vice President Lipen Yuan bought additional TSM shares in a recent insider purchase, which can be read as a modest vote of confidence from management.
- Neutral Sentiment: TSMC also detailed capex and bond issuance plans in a recent filing, which mainly underscores its heavy investment needs to support future capacity growth.
Analysts Set New Price Targets
Several equities analysts have recently weighed in on the company. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. DA Davidson reaffirmed a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Susquehanna upped their price target on Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the company a “positive” rating in a research report on Monday. Finally, Needham & Company LLC upped their price target 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. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and an average price target of $449.38.
Taiwan Semiconductor Manufacturing Price Performance
The business’s 50-day moving average price is $411.75 and its 200 day moving average price is $361.93. The stock has a market capitalization of $2.26 trillion, a PE ratio of 36.36, a price-to-earnings-growth ratio of 1.27 and a beta of 1.38. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. Research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 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. Shareholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s payout ratio is 25.12%.
Insider Activity
In related news, VP Bor-Zen Tien acquired 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the transaction, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was 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 approximately $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders acquired 4,496 shares of company stock worth $327,927. 1.11% of the stock is currently owned by insiders.
Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing
A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Shannon River Fund Management LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 3rd quarter valued at $2,430,000. Capital Research Global Investors grew its holdings in Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after acquiring an additional 1,281,648 shares during the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. purchased a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $961,000. Meridian Wealth Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 27.9% in the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock valued at $20,049,000 after acquiring an additional 14,406 shares during the period. Finally, Boyer Financial Services Inc. bought a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at about $648,000. Hedge funds and other institutional investors own 16.51% of the company’s stock.
About Taiwan Semiconductor Manufacturing
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.
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