Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 3.4% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares dropped 3.4% on Tuesday . The company traded as low as $425.20 and last traded at $426.34. Approximately 10,743,962 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 13,733,669 shares. The stock had previously closed at $441.40.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC signed a 10-year advanced packaging partnership with Amkor in Arizona, expanding its U.S. manufacturing footprint and reinforcing demand for its high-end chip packaging services. Taiwan Semiconductor Manufacturing (NYSE:TSM) And Amkor Sign 10 Year Arizona Packaging Deal
• Positive Sentiment: Several articles highlighted TSMC as a top AI and momentum stock, reflecting continued investor enthusiasm for its role in the AI supply chain and its strong growth outlook. Here’s Why TSMC (TSM) is a Great Momentum Stock to Buy
• Positive Sentiment: TSMC received another vote of confidence from an insider purchase, with a vice president buying additional shares, which investors often view as a bullish signal from management. Taiwan Semiconductor Manufacturing (NYSE:TSM) VP Lipen Yuan Buys 1,000 Shares
• Neutral Sentiment: Analyst commentary remained constructive, with multiple firms maintaining buy ratings or raising price targets, but this mostly reinforced already-positive sentiment rather than adding a new catalyst. Taiwan Semiconductor Manufacturing stock information
• Neutral Sentiment: Other coverage framed TSMC as a core AI infrastructure name and a “no-nonsense” market hedge, which supports the stock’s valuation but did not appear to change fundamentals. Here’s Why TSMC (TSM) is a Great Momentum Stock to Buy
• Negative Sentiment: One report noted Samsung is attracting interest from customers seeking alternatives as TSMC capacity tightens, suggesting competition could increase if demand remains constrained. Samsung draws advanced chipmaking interest as TSMC capacity tightens
• Negative Sentiment: There was also a recent note that TSMC fell more than the broader market in the prior session, pointing to some short-term profit-taking after a strong run. TSMC (TSM) Registers a Bigger Fall Than the Market: Important Facts to Note

Wall Street Analyst Weigh In

TSM has been the subject of several research reports. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. DA Davidson reissued a “buy” rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Barclays raised their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Finally, Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Trading Up 7.1%

The business has a 50 day moving average of $402.64 and a 200-day moving average of $356.22. The stock has a market cap of $2.40 trillion, a PE ratio of 38.50, a price-to-earnings-growth ratio of 1.24 and a beta of 1.38. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The company had revenue of $30.65 billion during the quarter. On average, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 25.12%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, 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 sale, the vice president directly owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Monday, June 15th. The shares were purchased at an average price of $75.26 per share, with a total value of $75,260.00. Following the completion of the acquisition, the vice president owned 4,000 shares of the company’s stock, valued at approximately $301,040. This represents a 33.33% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 4,496 shares of company stock valued at $304,667. 1.11% of the stock is owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently modified their holdings of TSM. Tiger Global Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the last quarter. Van ECK Associates Corp increased its stake in Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. lifted its position in Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after buying an additional 1,313,917 shares during the period. Finally, SurgoCap Partners LP purchased a new position in Taiwan Semiconductor Manufacturing during the third quarter worth about $360,443,000. Hedge funds and other institutional investors 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.