Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price traded down 1.9% during mid-day trading on Monday. The company traded as low as $444.35 and last traded at $444.8070. Approximately 8,702,864 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 13,044,854 shares. The stock had previously closed at $453.31.
Taiwan Semiconductor Manufacturing News Roundup
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: TSMC’s monthly revenue and management guidance point to a strong third quarter, with analysts expecting approximately $46.7 billion in revenue and $23.4 billion in profit. The results could provide an important read-through for Nvidia and the broader AI-chip market. TSMC Eyes $23.4 Billion Q3 Profit
- Positive Sentiment: Investors expect high-performance computing, advanced 3-nanometer production and continued AI infrastructure spending to drive growth. TSMC’s dominant position in advanced logic manufacturing supports expectations for strong margins and multi-year expansion. 3 Things to Watch When TSMC Reports Earnings
- Positive Sentiment: Several analysts and prominent investors remain constructive: two of three AI chatbots selected TSMC ahead of earnings, while Stanley Druckenmiller reportedly holds it as a major portfolio position. AI Chatbots’ Top Stock Picks
- Neutral Sentiment: The October 15 earnings report is the key near-term catalyst. Investors will focus on whether TSMC can raise capacity, sustain AI-related demand and provide guidance strong enough to justify elevated expectations. TSMC Earnings as an Early Read on Nvidia
- Negative Sentiment: TSMC’s shares have returned roughly 4.1 times over three years, placing greater scrutiny on cash-flow generation and whether its valuation—around 32 times earnings—already reflects much of the AI opportunity. Heavy capital spending could also weigh on near-term free cash flow. Can TSMC Justify Its Price on Cash Flow?
- Negative Sentiment: Microsoft’s push to develop more of its own AI chips has pressured Nvidia and highlights the longer-term risk that custom silicon could reduce dependence on merchant chip suppliers, potentially tempering sentiment across the semiconductor industry. Why Nvidia Stock Declined
Analysts Set New Price Targets
A number of research analysts have recently commented on TSM shares. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Bank of America boosted their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, October 6th. Sanford C. Bernstein increased their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Finally, Susquehanna lifted their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $524.89.
Taiwan Semiconductor Manufacturing Trading Down 1.9%
The business has a fifty day moving average price of $433.13 and a 200 day moving average price of $414.33. The company has a market capitalization of $2.31 trillion, a PE ratio of 32.09, a P/E/G ratio of 1.00 and a beta of 1.37. 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 issued its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) 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 during the quarter. Analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current fiscal year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 24.75%.
Insiders Place Their Bets
In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien acquired 1,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The stock was bought at an average price of $73.06 per share, with a total value of $73,060.00. Following the completion of the transaction, the vice president directly owned 14,051 shares of the company’s stock, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Lipen Yuan bought 350 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was acquired at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the purchase, the vice president owned 2,000 shares in the company, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 16,043 shares of company stock worth $1,185,746 over the last ninety days. 1.11% of the stock is owned by company insiders.
Institutional Trading of Taiwan Semiconductor Manufacturing
Large investors have recently added to or reduced their stakes in the stock. Tiger Global Management LLC raised its stake in shares of 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 worth $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its position in 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 worth $636,077,000 after acquiring an additional 1,313,917 shares in the last quarter. Corient Private Wealth LLC increased its stake 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 worth $481,111,000 after purchasing an additional 1,215,035 shares during the last quarter. Fundsmith LLP acquired a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth $548,465,000. Finally, Assenagon Asset Management S.A. bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $490,461,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.
About Taiwan Semiconductor Manufacturing
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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