Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.7% – Should You Sell?

Posted by Brian Himes on Sep 12th, 2026

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report) dropped 1.7% during trading on Thursday . The stock traded as low as $424.05 and last traded at $428.0920. 8,318,176 shares were traded during trading, a decline of 38% from the average daily volume of 13,431,174 shares. The stock had previously closed at $435.36.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

Positive Sentiment: TSMC reported August 2026 revenue of NT$514.81 billion, approximately $16.35 billion, up 53.3% year over year and 10.1% from July. The record result, driven by strong orders from hyperscalers and enterprise customers, indicates that AI-chip demand remains robust and TSMC’s production capacity is operating near full utilization. TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip Demand
Positive Sentiment: The revenue surge is favorable for major customers such as Nvidia because it suggests TSMC can continue supporting high-performance computing and AI-accelerator production. Tight advanced-packaging and foundry capacity also strengthens TSMC’s pricing power and supports its exceptionally high margins. TSMC Just Delivered Fantastic News for Nvidia Shareholders
Positive Sentiment: TSMC and ASML are collaborating on large-format photomasks for High-NA EUV technology, with potential long-term benefits for advanced-node productivity, manufacturing costs and AI-chip output. TSMC’s Arizona operations and planned global investment may also reduce geographic concentration concerns. TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV
Positive Sentiment: Analysts remain constructive, with a consensus Buy rating and an average price target of $523.22. Erste Group also modestly raised its fiscal 2027 EPS forecast, while CEO Che-Chia Wei’s recent share purchase provides a small additional signal of management confidence. TSMC CEO Acquires Shares
Neutral Sentiment: Despite the strong operating data, TSMC shares recently underperformed the broader market because investors may already be pricing in several years of AI growth. Articles identify valuation and future gross-margin performance as key numbers that could determine the stock’s next move. TSMC Price Prediction
Negative Sentiment: Higher Treasury yields and expectations for a Federal Reserve rate hike are pressuring high-growth technology valuations. The broader retreat in AI-related stocks has limited the market’s response to TSMC’s record sales, while future High-NA EUV benefits will not arrive at scale for several years. Fed Rate Hike Close To A Lock

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Bank of America boosted their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Sanford C. Bernstein lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research note on Tuesday, August 11th. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Finally, Needham & Company LLC boosted their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $523.22.

Read Our Latest Analysis on TSM

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market capitalization of $2.25 trillion, a price-to-earnings ratio of 31.25, a P/E/G ratio of 0.95 and a beta of 1.39. The company has a 50 day moving average price of $418.99 and a 200 day moving average price of $400.34. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion for the quarter. Equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 21.43%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin purchased 1,000 shares of the firm’s stock in a transaction on Tuesday, July 21st. The stock was 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 of the company’s stock, valued at $2,243,840.97. This trade represents a 3.42% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Lipen Yuan acquired 1,000 shares of the stock in a transaction on Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the acquisition, the vice president owned 6,000 shares of the company’s stock, valued at approximately $447,000. The trade was a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders acquired 21,106 shares of company stock worth $1,571,733. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently bought and sold shares of TSM. Fisher Asset Management LLC increased 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 valued at $5,514,662,000 after purchasing an additional 313,773 shares during the last quarter. Van ECK Associates Corp lifted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Bank of America Corp DE lifted its position in shares of Taiwan Semiconductor Manufacturing by 6.5% during the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after acquiring an additional 966,926 shares in the last quarter. Coatue Management LLC boosted its holdings in shares of 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 worth $2,622,426,000 after acquiring an additional 556,988 shares during the period. Finally, Janus Henderson Group PLC grew its position in shares of Taiwan Semiconductor Manufacturing by 7.7% in the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after purchasing an additional 594,780 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

(Get Free Report)

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.