Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – What’s Next?

Posted by Geri Gentry on Jul 16th, 2026

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price fell 2.7% during mid-day trading on Thursday . The company traded as low as $403.50 and last traded at $408.3580. Approximately 24,773,512 shares were traded during mid-day trading, an increase of 77% from the average daily volume of 14,027,875 shares. The stock had previously closed at $419.48.

Taiwan Semiconductor Manufacturing News Summary

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

Positive Sentiment: TSMC reported record second-quarter results, with net profit up 77% to a record high and revenue rising 33.7%, easily beating estimates and reinforcing demand for AI-related chips. Reuters: TSMC Q2 profit jumps 77% to record, far surpasses expectations
Positive Sentiment: The company raised its 2026 revenue outlook above 40% growth, signaling management confidence that AI demand will stay strong. CNBC: TSMC second-quarter profit jumps 23%, beating estimates, on high-end chip boom
Positive Sentiment: TSMC announced an additional $100 billion investment in U.S. manufacturing, lifting its total U.S. commitment to $265 billion and expanding advanced-node capacity for AI chips. Reuters: TSMC’s second-quarter profit seen hitting record on AI boom
Neutral Sentiment: The stock is also being weighed by broader semiconductor weakness and market worries that AI infrastructure spending may be peaking or becoming less profitable for chipmakers. Barron’s: Sandisk, UnitedHealth, J.B. Hunt, TSMC, and More Stocks That Explain Today’s Market
Negative Sentiment: Investors seem concerned that the massive capex increase tied to U.S. expansion could pressure future margins, even after the earnings beat, which is helping trigger the selloff in TSM shares. Invezz: Why is TSMC stock falling despite record Q2 earnings?

Analysts Set New Price Targets

TSM has been the topic of several recent analyst reports. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Bank of America boosted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Finally, Barclays increased their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a report on Wednesday, April 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $452.50.

Check Out Our Latest Analysis on TSM

Taiwan Semiconductor Manufacturing Price Performance

The stock’s 50-day moving average price is $427.18 and its 200-day moving average price is $377.06. The company has a market capitalization of $2.12 trillion, a price-to-earnings ratio of 33.97, a price-to-earnings-growth ratio of 1.05 and a beta of 1.36. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The semiconductor company reported $4.31 EPS for the quarter, beating the consensus estimate of $3.82 by $0.49. The business had revenue of $39.89 billion for the quarter, compared to analysts’ expectations of $39.85 billion. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. Taiwan Semiconductor Manufacturing’s revenue was up 33.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.47 earnings per share. Equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.44 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 24.71%.

Insider Activity

In other news, VP Bor-Zen Tien purchased 1,000 shares of the business’s stock in a transaction dated Monday, June 29th. The shares were acquired at an average price of $76.64 per share, with a total value of $76,640.00. Following the completion of the purchase, the vice president directly owned 12,051 shares of the company’s stock, valued at $923,588.64. The trade was a 9.05% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s 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 approximately $174,237,371.95. This represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders bought 6,857 shares of company stock valued at $512,334. Company insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Fisher Asset Management LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 1.8% during the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after buying an additional 313,773 shares during the period. Van ECK Associates Corp lifted its holdings in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after buying an additional 1,750,824 shares during the period. Bank of America Corp DE lifted its holdings in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock valued at $4,832,708,000 after buying an additional 966,926 shares during the period. Jennison Associates LLC boosted its stake in Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after acquiring an additional 802,757 shares during the last quarter. Finally, Coatue Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 6.9% in the fourth quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock valued at $2,622,426,000 after acquiring an additional 556,988 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.