Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.6% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price rose 1.6% during trading on Tuesday . The company traded as high as $452.88 and last traded at $452.1470. Approximately 11,205,701 shares changed hands during trading, a decline of 16% from the average session volume of 13,341,036 shares. The stock had previously closed at $445.14.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analysts raised earnings forecasts. Erste Group Bank increased its FY2026 EPS estimate to $16.78 from $16.72 and its FY2027 forecast to $21.91 from $21.72, above the current full-year consensus of $16.55. The revisions signal confidence in TSMC’s earnings growth. Erste Group Bank raises TSMC earnings estimates
• Positive Sentiment: AI demand is driving capacity expansion. TSMC is investing heavily in advanced packaging to meet demand from Nvidia and other chip designers. Taiwan also broke ground on a Kaohsiung packaging park that will include TSMC technology-validation and talent-training facilities, helping address supply-chain and production bottlenecks. Taiwan breaks ground on advanced packaging park anchored by TSMC
• Positive Sentiment: Profitability has improved substantially. A report highlighted gross-margin expansion from 59% in the June 2025 quarter to 68% in June 2026, suggesting strong pricing power and operating leverage despite ongoing technology transitions. TSMC capital expenditure and margin report
• Positive Sentiment: Sector momentum provided additional support. TSMC gained alongside other semiconductor leaders as Taiwan’s Taiex reached a record intraday high. Optimism about U.S.-China discussions also lifted Asian technology stocks. Taiwan benchmark Taiex rises as tech stocks advance
• Neutral Sentiment: TSM became a heavily watched stock on Zacks, but the coverage primarily reflects investor interest rather than a specific new fundamental catalyst. Why TSM is a trending stock
• Negative Sentiment: High capital spending and ramp costs could pressure near-term results. Quarterly capital expenditure rose sharply to $15.59 billion, while management expects the next-quarter gross margin to moderate to 66% as 2-nanometer production ramps. This creates execution and profitability risks despite the stronger annual outlook. TSMC capital expenditure and margin report

Analysts Set New Price Targets

Several brokerages have issued reports on TSM. TD Cowen raised their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research report on Friday, July 17th. Bank of America upped their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Susquehanna raised their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday, July 16th. Finally, Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Three 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 stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Stock Up 1.6%

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 company has a fifty day simple moving average of $417.87 and a 200-day simple moving average of $402.75. The firm has a market cap of $2.35 trillion, a P/E ratio of 32.62, a price-to-earnings-growth 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 earnings per share for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.25%.

Insider Activity

In other news, VP Shyue-Shyh Lin acquired 1,000 shares of the firm’s stock in a transaction dated Tuesday, July 21st. The shares were purchased at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the transaction, the vice president directly owned 30,269 shares of the company’s stock, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Shu-Hua Fang bought 2,000 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were purchased at an average price of $77.09 per share, for a total transaction of $154,180.00. Following the purchase, the senior vice president owned 8,206 shares in the company, valued at $632,600.54. This represents a 32.23% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 19,106 shares of company stock valued at $1,417,283. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cedar Mountain Advisors LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% in the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after buying an additional 30 shares in the last quarter. Markowski Investments bought a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $33,000. Hilton Head Capital Partners LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter worth $27,000. Evolution Wealth Management Inc. boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th 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 last quarter. Institutional investors own 16.51% of the company’s stock.

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.