Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.9% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares shot up 2.9% during mid-day trading on Monday . The stock traded as high as $433.81 and last traded at $427.1140. 11,156,918 shares were traded during mid-day trading, a decline of 19% from the average session volume of 13,777,495 shares. The stock had previously closed at $415.17.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported May 2026 revenue of NT$416.98 billion, up about 30% year over year, reinforcing that AI-driven demand for advanced chips remains very strong and that the company is on track with its quarterly revenue target. AI Boom Sends TSMC Sales Soaring 30% as Chip Appetite Explodes
• Positive Sentiment: TSMC is still being viewed as a key AI infrastructure winner, with commentary highlighting its critical role in serving demand from customers like Nvidia and Apple as the AI buildout continues. TSMC Posts 30% Year-on-Year Revenue Surge for May 2026, Details Expanded U.S. Guarantees
• Positive Sentiment: CEO Che-Chia Wei bought additional TSMC shares, a modest insider-confidence signal that can support investor sentiment. Taiwan Semiconductor Manufacturing (NYSE:TSM) CEO Che-Chia Wei Acquires 150 Shares
• Neutral Sentiment: Broader semiconductor stocks have weakened as traders rotate out of the group, so TSMC is getting hit by sector sentiment even after posting strong operating data. Stock Market Today: Nasdaq, Dow Knocked Down As Techs Sell Off; Cracker Barrel Surges (Live Coverage)
• Neutral Sentiment: Some market commentary says TSMC remains a dominant AI supplier, but the stock’s valuation may already reflect a lot of that optimism. Taiwan Semiconductor Sales Rise 30% In May, Remain On Target
• Negative Sentiment: Taiwan is considering tighter export controls on advanced AI chips to China, which could limit some future sales opportunities and raise compliance risk for TSMC. Taiwan Export Curbs Put TSMC China Exposure And Valuation In Focus
• Negative Sentiment: U.S. lawmakers are also pushing for stricter rules on contract chipmakers serving Chinese firms’ overseas units, adding another export-control headwind for TSMC. US lawmakers urge tighter rules on contract chipmakers supplying Chinese firms’ overseas units
• Negative Sentiment: Investor focus is shifting to whether TSMC’s China exposure and high valuation are sustainable if export restrictions tighten further. TSM Reports Strong May Revenue, Yet Stock Declines Amid Semiconductor Weakness

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Wedbush reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. DA Davidson reissued a “buy” rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Finally, Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49. The business’s fifty day simple moving average is $391.93 and its 200-day simple moving average is $350.26. The firm has a market capitalization of $2.12 trillion, a PE ratio of 33.99, a price-to-earnings-growth ratio of 1.24 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The firm had revenue of $30.65 billion during the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.29 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s payout ratio is 24.71%.

Insider Activity

In other news, VP Bor-Zen Tien acquired 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the acquisition, the vice president directly owned 11,051 shares of the company’s stock, valued at $772,575.41. The trade was a 22.10% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through 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 transaction of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders purchased a total of 3,496 shares of company stock worth $229,407 in the last ninety days. 1.11% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently modified their holdings of the stock. Quattro Advisors LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $25,000. Hilton Head Capital Partners LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter worth approximately $27,000. Stephens Consulting LLC boosted its position in Taiwan Semiconductor Manufacturing by 82.0% in the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares in the last quarter. Evolution Wealth Management Inc. boosted its position in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC boosted its position in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 36 shares in the last quarter. Institutional investors and hedge funds 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.