Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.2% Higher – Time to Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 1.2% during trading on Friday . The company traded as high as $435.37 and last traded at $433.0910. Approximately 10,474,495 shares traded hands during trading, a decline of 22% from the average daily volume of 13,397,439 shares. The stock had previously closed at $428.03.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record August revenue of NT$514.81 billion, approximately $16.35 billion, up 53.3% year over year and 10.1% from July. The acceleration signals strong orders from cloud providers and enterprise hardware companies, particularly for advanced AI chips. TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip Demand
• Positive Sentiment: The revenue report is also constructive for major customers such as Nvidia because TSMC is a critical supplier of advanced processors and packaging. Capacity bookings extending years into the future suggest that AI infrastructure spending remains robust. TSMC Just Delivered Fantastic News for Nvidia Shareholders
• Positive Sentiment: Analysts remain broadly bullish, with a consensus Buy rating and an average price target of $523.22, above the current trading level. Erste Group also modestly raised its FY2027 EPS estimate to $21.72. CEO Che-Chia Wei’s open-market purchase adds a small signal of management confidence. TSMC CEO Acquires Shares
• Neutral Sentiment: TSMC and ASML are developing large-format High-NA EUV photomasks that could improve productivity and reduce manufacturing costs. However, planned high-volume adoption begins around 2030, so the financial benefit is several years away. TSMC Collaborates to Expand Large-Format Photomasks
• Negative Sentiment: The stock previously declined despite the record sales report because investors wanted an even stronger outlook. Higher Treasury yields, inflation concerns and broader weakness in technology shares are pressuring valuation multiples. At roughly 31 times earnings, TSMC is vulnerable to profit-taking after gaining more than 60% over the past year. TSMC Falls After Record Sales

Wall Street Analysts Forecast Growth

Several brokerages have commented on TSM. Sanford C. Bernstein lifted their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Barclays raised their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Bank of America lifted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Needham & Company LLC increased their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market capitalization of $2.25 trillion, a price-to-earnings ratio of 31.25, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company has a 50 day simple moving average of $419.02 and a 200-day simple moving average of $400.11. 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 announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion during the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, SVP Shu-Hua Fang acquired 2,000 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were bought at an average price of $77.09 per share, with a total value of $154,180.00. Following the transaction, the senior vice president directly owned 8,206 shares of the company’s stock, valued at $632,600.54. This trade represents a 32.23% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The stock was purchased at an average price of $74.50 per share, with a total value of $74,500.00. Following the completion of the purchase, the vice president owned 6,000 shares in the company, valued at $447,000. This trade represents a 20.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 21,106 shares of company stock worth $1,571,733 over the last quarter. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tiger Global Management LLC raised its stake in Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the period. Van ECK Associates Corp boosted its position in Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after purchasing an additional 1,750,824 shares during the period. Life Cycle Investment Partners Ltd purchased a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% in 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 purchasing an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP bought a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $360,443,000. 16.51% of the stock is owned by institutional investors.

About Taiwan Semiconductor Manufacturing

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.