Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 11% – Here’s What Happened

Posted by Brenda Bartman on Nov 5th, 2026

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price fell 11% on Thursday. The stock traded as low as $351.19 and last traded at $352.1940. 41,794,794 shares were traded during mid-day trading, an increase of 218% from the average daily volume of 13,140,400 shares. The stock had previously closed at $395.75.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

Positive Sentiment: Bernstein raised its price target on TSM to $600 and reiterated an “outperform” rating, signaling confidence in the stock’s longer-term prospects. Article: Bernstein raises TSM price target
Positive Sentiment: TSMC’s AI opportunity remains a key support: it manufactures advanced chips for multiple leading chip designers, and recent coverage notes AI demand is outpacing supply. The company also recently recorded another quarterly earnings beat. Article: TSMC’s expanding AI opportunity
Positive Sentiment: ETFs bought $146.2 million of TSM shares on Nov. 3, a supportive institutional-flow signal. Article: ETF buying in TSM
Neutral Sentiment: TSMC plans to list $450 million in green bonds in Taiwan. The financing may support environmental projects, but the report does not indicate a material near-term change to earnings. Article: TSMC green-bond listing
Negative Sentiment: A broad semiconductor sell-off is weighing on TSM alongside concerns about AI spending, lofty growth expectations and valuations. Despite strong industry sales data, investors are focused on whether demand can sustain expectations into 2027. Article: Semiconductor sell-off and AI expectations
Negative Sentiment: Investors are also watching TSMC’s next monthly sales release on Nov. 10; the report frames the upcoming figures against a high quarterly revenue benchmark, raising expectations for continued growth. Article: TSMC sales data and quarterly benchmark

Analysts Set New Price Targets

Several research analysts have recently weighed in on TSM shares. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Sanford C. Bernstein lifted their price objective on Taiwan Semiconductor Manufacturing from $554.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday. Susquehanna lifted their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Finally, TD Cowen upped their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $533.89.

View Our Latest Stock Report on TSM

Taiwan Semiconductor Manufacturing Trading Down 11.0%

The business’s 50-day simple moving average is $434.04 and its two-hundred day simple moving average is $400.48. The firm has a market capitalization of $1.83 trillion, a price-to-earnings ratio of 22.66, a PEG ratio of 0.82 and a beta of 1.44. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last issued 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 business had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The company’s revenue was up 41.2% on a year-over-year basis. During the same period in the previous year, the firm posted $2.92 earnings per share. Equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 annualized dividend and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 22.07%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 1,000 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were bought at an average price of $74.50 per share, with a total value of $74,500.00. Following the completion of the acquisition, the vice president owned 6,000 shares in the company, valued at $447,000. This trade represents a 20.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last quarter, insiders bought 7,043 shares of company stock valued at $529,416. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Silver Grove Financial Group Inc. lifted its position in Taiwan Semiconductor Manufacturing by 16.8% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 613 shares of the semiconductor company’s stock worth $280,000 after acquiring an additional 88 shares during the period. Bahl & Gaynor LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 16.4% during the third quarter. Bahl & Gaynor LLC now owns 1,636,856 shares of the semiconductor company’s stock worth $746,717,000 after purchasing an additional 231,157 shares during the last quarter. Brooklyn FI LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the third quarter worth $1,014,000. AMG National Trust Bank lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 0.8% during the third quarter. AMG National Trust Bank now owns 27,435 shares of the semiconductor company’s stock worth $12,516,000 after purchasing an additional 229 shares during the period. Finally, Moneco Advisors LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.0% during the third quarter. Moneco Advisors LLC now owns 9,256 shares of the semiconductor company’s stock worth $4,223,000 after purchasing an additional 184 shares during the period. Institutional investors and hedge funds 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.