Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.5% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was down 2.5% during trading on Wednesday. The company traded as low as $391.61 and last traded at $394.8110. Approximately 14,334,138 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 13,022,273 shares. The stock had previously closed at $404.80.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s position as a major foundry for multiple chip designers—including Nvidia, AMD, Apple and Broadcom—could let it benefit broadly from AI-chip demand. Recent coverage also highlights the potential contribution of its advanced manufacturing and upcoming 2-nanometer ramp. Article: Better AI Semiconductor Monopoly Stock: Taiwan Semiconductor vs. ASML
• Positive Sentiment: Vice President Lipen Yuan bought 1,000 shares, increasing his reported holdings by 14.29%. The purchase may signal confidence, though its size is modest relative to the company. Article: Taiwan Semiconductor Manufacturing VP Buys Stock
• Neutral Sentiment: TSMC’s latest quarterly results beat analyst estimates, with revenue up 41.2% year over year, providing a strong fundamental backdrop. However, investors are now looking for the next sales update to sustain that momentum.
• Negative Sentiment: The upcoming sales report creates a near-term expectation risk: failure to meet the pace implied by the quarterly revenue hurdle could disappoint investors. Broader weakness in AI stocks and reports of hedge funds turning underweight the sector may also be weighing on sentiment. Article: TSMC Stocks Move Lower as November Sales Data Face a $53.3 Billion Quarterly Hurdle Article: AI Stocks Lose $5 Trillion as Hedge Funds Turn Underweight

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. DA Davidson restated a “buy” rating and issued a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Needham & Company LLC lifted their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target for the company. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Sanford C. Bernstein raised their price target on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a report on Tuesday, August 11th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 2.5%

The business’s fifty day simple moving average is $434.50 and its 200 day simple moving average is $400.22. The stock has a market cap of $2.05 trillion, a price-to-earnings ratio of 25.41, a price-to-earnings-growth ratio of 0.81 and a beta of 1.44. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.45 by $0.15. The firm had revenue of $46.72 billion for the quarter, compared to analyst estimates of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The company’s quarterly revenue was up 41.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.92 earnings per share. Equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 10th. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan acquired 1,000 shares of the business’s stock in a transaction dated Sunday, November 1st. The shares were acquired at an average price of $71.49 per share, for a total transaction of $71,490.00. Following the acquisition, the vice president directly owned 8,000 shares of the company’s stock, valued at approximately $571,920. This trade represents a 14.29% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders bought a total of 7,043 shares of company stock worth $529,416 over the last quarter. Company insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently added to or reduced their stakes in the stock. Brookstone Capital Management lifted its stake in Taiwan Semiconductor Manufacturing by 87.3% in the 2nd quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company’s stock valued at $12,008,000 after acquiring an additional 11,719 shares in the last quarter. Opal Capital LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 72.5% during the 1st quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company’s stock worth $9,384,000 after purchasing an additional 11,666 shares during the last quarter. Western Wealth Management LLC increased its position in Taiwan Semiconductor Manufacturing by 27.4% during the first quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company’s stock worth $9,447,000 after buying an additional 6,013 shares during the last quarter. MRA Advisory Group acquired a new position in Taiwan Semiconductor Manufacturing during the third quarter worth approximately $704,000. Finally, Cantor Fitzgerald Investment Advisors L.P. bought a new stake in Taiwan Semiconductor Manufacturing in the 3rd quarter valued at $6,129,000. 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 dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.