Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 4.4% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were down 4.4% on Friday . The stock traded as low as $336.69 and last traded at $338.27. Approximately 13,665,834 shares traded hands during trading, a decline of 3% from the average daily volume of 14,036,720 shares. The stock had previously closed at $353.86.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Long-term bookings from Broadcom strengthen revenue visibility — Broadcom has secured HBM and TSMC capacity through 2028, which should support TSMC utilization and cashflow as AI demand grows. Read More.
• Positive Sentiment: TSMC is accelerating a new mega fab in southern Taiwan to add AI-focused capacity — that expansion helps address long-term supply constraints and supports revenue growth as hyperscalers scale AI deployments. Read More.
• Neutral Sentiment: Nvidia’s reallocation of TSMC capacity from China-bound H200 to Vera Rubin is a mixed signal — it may free capacity for higher-margin, next-gen GPUs (benefit to TSMC throughput/revenue) but reflects export-control uncertainty that complicates demand forecasting. Read More.
• Neutral Sentiment: Investor rotation into AI stocks (per 13F filings) shows broader appetite for AI exposure — this supports long-term demand for advanced foundry capacity, though the flows cited are toward other AI names rather than directly into TSM. Read More.
• Negative Sentiment: Export-control and China-market uncertainty could damp near-term shipments — reports that Nvidia halted China-bound H200 production underscore geopolitical risk that can reduce near-term demand visibility and weigh on sentiment. Read More.
• Negative Sentiment: Valuation and profit-taking concerns persist despite strong fundamentals — analysts and commentators continue debating TSMC’s premium multiple even as earnings/revenue remain robust, which can amplify down-days on mixed news. Read More.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Wedbush restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Finally, Freedom Capital raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Four research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average target price of $391.43.

Taiwan Semiconductor Manufacturing Price Performance

The company has a quick ratio of 2.42, a current ratio of 2.62 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $1.75 trillion, a PE ratio of 31.76, a PEG ratio of 1.00 and a beta of 1.29. The stock has a 50-day moving average price of $342.34 and a 200 day moving average price of $300.91.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. Equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a dividend of $0.9503 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 23.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently bought and sold shares of the company. Childress Capital Advisors LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 145.3% during the 3rd quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock valued at $891,000 after buying an additional 1,891 shares during the last quarter. Vanguard Personalized Indexing Management LLC raised its position in Taiwan Semiconductor Manufacturing by 9.4% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock valued at $28,470,000 after acquiring an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 28.6% in the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock valued at $10,394,000 after acquiring an additional 8,284 shares during the last quarter. Hollencrest Capital Management grew its position in Taiwan Semiconductor Manufacturing by 125.3% in the third quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock worth $1,457,000 after acquiring an additional 2,901 shares in the last quarter. Finally, Cherokee Insurance Co bought a new stake in Taiwan Semiconductor Manufacturing in the second quarter worth approximately $1,248,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

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.