Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3% – Time to Sell?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 3% during trading on Friday . The stock traded as low as $400.80 and last traded at $403.1830. Approximately 11,444,511 shares were traded during mid-day trading, a decline of 18% from the average session volume of 14,009,795 shares. The stock had previously closed at $415.58.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC reported record AI-driven earnings, with strong margins and guidance, and raised its 2026 revenue growth outlook to above 40%, reinforcing that demand for advanced chips remains robust. Article Title
• Positive Sentiment: The company committed another $100 billion to U.S. chipmaking, signaling confidence in long-term AI chip demand and expanding its strategic footprint in America. Article Title
• Positive Sentiment: Analysts and market commentary continue to highlight TSMC as a key beneficiary of the AI infrastructure buildout, with pricing power and demand for 2-nanometer technology supporting the bullish case. Article Title
• Neutral Sentiment: TSMC’s planned price increases for 2027 suggest strong pricing power, but the move is also fueling debate about whether AI chip customers can absorb higher costs. Article Title
• Neutral Sentiment: Broader semiconductor stocks are pulling back after a strong 2026 run as investors take profits and reassess valuations following the AI-fueled rally. Article Title
• Negative Sentiment: Intel’s strong earnings were overshadowed by its higher 2026 capital spending plans, adding to concerns that the AI buildout may require heavier spending across the chip sector and pressuring sentiment on semiconductor stocks. Article Title

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on TSM. DA Davidson lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Susquehanna increased their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Bank of America raised their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Barclays lifted their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, Weiss Ratings cut Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, July 13th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average target price of $490.00.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a market cap of $2.09 trillion, a price-to-earnings ratio of 29.09, a P/E/G ratio of 0.93 and a beta of 1.36. The stock has a 50 day moving average of $427.67 and a 200 day moving average of $381.72. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 21.43%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction that occurred on 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 owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Bor-Zen Tien acquired 1,000 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was purchased at an average cost of $76.64 per share, for a total transaction of $76,640.00. Following the completion of the purchase, the vice president directly owned 12,051 shares of the company’s stock, valued at $923,588.64. The trade was a 9.05% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders bought 6,857 shares of company stock valued at $512,334. Company insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently modified their holdings of the business. Tiger Global Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after buying an additional 1,839,600 shares in the last quarter. Van ECK Associates Corp grew its position 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 acquiring an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. raised its stake 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 acquiring an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP bought a new position in shares of Taiwan Semiconductor Manufacturing in the third quarter worth about $360,443,000. 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.