Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.1% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 2.1% on Monday . The stock traded as low as $391.05 and last traded at $395.8420. Approximately 11,967,177 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 14,066,553 shares. The stock had previously closed at $404.35.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Several articles argue TSMC remains attractive as a long-term AI and chip manufacturing play, including commentary that the stock looks appealing below $400 and that the company is still a “multibagger” because of its dominant foundry position. Buy TSM Below $400
• Positive Sentiment: Investors are also viewing TSMC as a core beneficiary of AI-driven semiconductor demand, with reports citing strong hedge-fund interest and expectations for a much larger global chip market by 2030. Taiwan Semiconductor Manufacturing (TSM): One of the Best Fundamentally Strong Stocks to Buy Now
• Positive Sentiment: Tiger Global reportedly increased its TSMC stake, which can be interpreted as a vote of confidence from a major institutional investor. Tiger Global boosts TSMC stake, adding 1.84M shares
• Neutral Sentiment: TSMC is trimming its stake in Vanguard International Semiconductor to refocus capital on core operations; this is not a major surprise, but it reinforces management’s emphasis on valuation discipline and strategic focus. TSMC Trims Vanguard Stake To Refocus Capital And Valuation Story
• Neutral Sentiment: ARK Invest sold a sizable TSMC position while rotating into other AI and healthcare names, which reflects portfolio repositioning more than a clear thesis change on TSMC itself. ARK Invest Dumps $40M in TSMC Stock, Pivots to Cerebras and AI Healthcare
• Negative Sentiment: Geopolitical risk around Taiwan remains a headline concern, and that uncertainty can weigh on TSMC shares even when the company’s fundamentals are strong. Game Theory Says Taiwan May Be The World’s Most Dangerous Standoff

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on TSM. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 22nd. Needham & Company LLC upped their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research note on Thursday, April 16th. Wedbush reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Finally, DA Davidson reissued a “buy” rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

The firm has a market capitalization of $2.05 trillion, a price-to-earnings ratio of 32.93, a P/E/G ratio of 1.18 and a beta of 1.39. The company’s 50 day moving average is $365.38 and its 200-day moving average is $335.07. The company has a current ratio of 2.51, a quick ratio of 2.32 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The firm had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%. Equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

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

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the company’s stock in a transaction that occurred on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the purchase, the vice president owned 9,051 shares in the company, valued at approximately $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. In the last quarter, insiders acquired 1,346 shares of company stock valued at $78,185. 1.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the stock. Quattro Advisors LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $25,000. Hilton Head Capital Partners LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $27,000. Stephens Consulting LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares during the period. Strategic Advocates LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 62.1% during 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 during the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $29,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.