Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price shot up 2.8% during trading on Thursday . The company traded as high as $430.53 and last traded at $429.3540. Approximately 12,295,738 shares changed hands during trading, a decline of 8% from the average daily volume of 13,348,618 shares. The stock had previously closed at $417.72.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s August revenue reportedly accelerated sharply, reinforcing expectations that stronger AI-related demand could drive additional earnings growth and potentially exceed analyst forecasts. TSMC’s Revenue Acceleration Could Drive More Upside
• Positive Sentiment: MediaTek’s launch of a flagship smartphone chip using TSMC’s 2-nanometer technology gives the company’s newest manufacturing node near-term commercial visibility. The node could also benefit from existing partnerships involving Nvidia and other major technology customers. TSMC’s 2nm Era Is Accelerating With MediaTek
• Positive Sentiment: Analysts and investing publications continue to identify TSMC as a “picks-and-shovels” beneficiary of the AI infrastructure buildout because it manufactures advanced processors for multiple chip designers, rather than relying on one AI-chip winner. 1 AI Stock Poised to Outperform Micron and Sandisk
• Positive Sentiment: Reports describe a capacity bottleneck for advanced chips that is leaving customers unable to secure enough supply, potentially strengthening TSMC’s pricing power and long-term growth prospects. Taiwan Semiconductor Is a No-Brainer Buy On Repeat
• Neutral Sentiment: TSMC’s strong AI position and recently improved growth outlook are being weighed against GlobalFoundries’ faster percentage growth in a particular business area, highlighting that competition remains relevant even as TSMC maintains greater scale and technological leadership. There’s a Good Reason to Choose GLOBALFOUNDRIES Over Taiwan Semiconductor Manufacturing
• Negative Sentiment: A shortage of skilled workers in U.S. semiconductor manufacturing could raise hiring costs, slow factory expansion or complicate TSMC’s efforts to scale its U.S. operations. Labor Crisis in U.S. Chip Manufacturing

Wall Street Analyst Weigh In

Several brokerages have issued reports on TSM. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Needham & Company LLC upped their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a report on Monday, July 27th. Stifel Nicolaus initiated coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a “buy” rating and a $515.00 target price on the stock. Sanford C. Bernstein boosted their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a report on Tuesday, August 11th. Finally, DA Davidson increased their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Up 2.8%

The firm has a market cap of $2.23 trillion, a PE ratio of 30.98, a price-to-earnings-growth ratio of 0.92 and a beta of 1.39. The business has a 50-day moving average price of $417.58 and a two-hundred day moving average price of $401.26. 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) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The firm had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 25.25%.

Insider Activity

In other news, VP Lipen Yuan acquired 350 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the acquisition, the vice president owned 2,000 shares of the company’s stock, valued at $147,160. This trade represents a 21.21% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Shu-Hua Fang purchased 2,000 shares of the business’s stock in a transaction on Thursday, July 2nd. The stock was acquired at an average price of $77.09 per share, for a total transaction of $154,180.00. Following the completion of the purchase, the senior vice president owned 8,206 shares of the company’s stock, valued at $632,600.54. This represents a 32.23% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 20,106 shares of company stock valued at $1,496,473. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors have recently modified their holdings of the stock. Cedar Mountain Advisors LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% in the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 30 shares during the period. Markowski Investments acquired a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth $33,000. Hilton Head Capital Partners LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter valued at $27,000. Evolution Wealth Management Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after buying an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.