Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.5% Higher – Time to Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 2.5% on Monday . The stock traded as high as $445.72 and last traded at $445.33. Approximately 9,894,194 shares were traded during mid-day trading, a decline of 26% from the average session volume of 13,345,186 shares. The stock had previously closed at $434.67.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Taiwan broke ground on an advanced-packaging industrial park in Kaohsiung, where TSMC plans to establish technology-validation facilities and a talent-training center. The project should strengthen Taiwan’s chip-supply ecosystem and help address advanced-packaging bottlenecks. Taiwan breaks ground on advanced packaging park anchored by TSMC
• Positive Sentiment: Reports that AMD plans to raise chip prices by 10% because of higher wafer costs suggest strong semiconductor demand and could highlight TSMC’s pricing power as a key supplier. AMD’s gains also lifted other major chip stocks, including TSMC. AMD Rises 5% as Report Flags 10% Chip Price Increase
• Positive Sentiment: TSMC is reportedly working with ASML, Nvidia, Intel, Samsung and SK Hynix to adapt ASML’s next-generation High-NA extreme-ultraviolet tools for larger data-center chips. The effort could improve TSMC’s ability to serve future AI infrastructure demand. ASML and Chip Giants like TSMC Plot a Bigger Canvas for Building AI Chips
• Neutral Sentiment: The Kaohsiung validation and training infrastructure is a long-term investment, with operations reportedly still about three years away. That limits its near-term earnings impact, even though it supports future capacity and workforce development. TSMC Gains as 88.7 Hectares Target Packaging Friction
• Neutral Sentiment: Broader optimism surrounding U.S.-China discussions and stronger Asian semiconductor shares is providing a favorable market backdrop, though it is not a direct change to TSMC’s fundamentals. Stocks advance after Bessent says talks with China were successful

Analysts Set New Price Targets

A number of research firms have weighed in on TSM. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. TD Cowen increased their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. Finally, Sanford C. Bernstein increased their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Performance

The business has a fifty day moving average price of $417.39 and a 200-day moving average price of $402.10. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $2.31 trillion, a P/E ratio of 32.13, a P/E/G ratio of 0.96 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The company had revenue of $39.89 billion during the quarter. On average, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current 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 given 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 (DPR) is presently 25.25%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 350 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was acquired at an average price of $73.58 per share, with a total value of $25,753.00. Following the acquisition, the vice president directly owned 2,000 shares of the company’s stock, valued at approximately $147,160. This trade represents a 21.21% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, VP Bor-Zen Tien purchased 1,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the purchase, the vice president owned 14,051 shares of the company’s stock, valued at $1,026,566.06. The trade was a 7.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 19,106 shares of company stock worth $1,417,283 in the last quarter. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Hilton Head Capital Partners LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at $27,000. Strategic Advocates LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares during the period. Basepoint Wealth LLC bought a new position in Taiwan Semiconductor Manufacturing in the fourth quarter worth approximately $31,000. Evolution Wealth Management Inc. grew its stake in Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Cedar Mountain Advisors LLC increased its holdings in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares during the period. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

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.