Taiwan Semiconductor Manufacturing (NYSE:TSM) Share Price Breaks Below 200 Day Moving Average – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $400.48 and traded as low as $391.61. Taiwan Semiconductor Manufacturing shares last traded at $394.8110, with a volume of 14,433,232 shares changing hands.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Industry commentary says strong semiconductor sales and AI infrastructure spending could benefit TSMC. As the foundry for chip designers including Nvidia, AMD, Apple and Broadcom, TSMC can participate in demand across multiple AI-chip makers. Article: 4 Semiconductor Stocks to Buy as Q3 Sales Soar on Robust AI Demand
• Positive Sentiment: A comparison of TSMC and ASML highlights TSMC’s advanced-chip manufacturing exposure to AI demand. Separate commentary also points to the potential of its next-generation process technology, though these are investment themes rather than new company guidance. Article: Better AI Semiconductor Monopoly Stock: Taiwan Semiconductor vs. ASML
• Positive Sentiment: Vice President Lipen Yuan reportedly bought 1,000 shares, increasing his direct holding by 14.29%. The insider purchase may signal confidence, though it is small relative to TSMC’s scale. Article: Taiwan Semiconductor Manufacturing VP Buys Stock
• Negative Sentiment: The approaching November sales update may keep investors cautious: the report is the first monthly reading of the new quarter, with $53.3 billion cited as the quarterly revenue hurdle. Article: TSMC Stocks Move Lower as November Sales Data Face a $53.3 Billion Quarterly Hurdle
• Negative Sentiment: Broader retreat from AI shares, including reports that hedge funds have turned underweight the sector, could weigh on TSMC despite its company-specific AI exposure. Article: AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI

Analysts Set New Price Targets

TSM has been the topic of a number of recent analyst reports. Stifel Nicolaus assumed coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 target price on the stock. TD Cowen lifted 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. DA Davidson reissued a “buy” rating and issued a $500.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 16th. Sanford C. Bernstein upped their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Finally, Susquehanna increased their price objective 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. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The company’s 50-day simple moving average is $434.04 and its 200 day simple moving average is $400.48. The company has a market cap of $2.05 trillion, a PE ratio of 25.41, a PEG ratio of 0.82 and a beta of 1.44. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, topping analysts’ consensus estimates of $4.45 by $0.15. The business 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 revenue was up 41.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.92 earnings per share. On average, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 22.07%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Sunday, November 1st. The shares were bought at an average price of $71.49 per share, with a total value of $71,490.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders bought 7,043 shares of company stock valued at $529,416. 1.11% of the stock is owned by company insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently made changes to their positions in TSM. Tiger Global Management LLC lifted its position in Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after acquiring an additional 1,839,600 shares during the period. Fundsmith LLP purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at approximately $548,465,000. Assenagon Asset Management S.A. acquired a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter valued at approximately $490,461,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $444,923,000. Finally, Perseverance Asset Management International increased its holdings in shares of Taiwan Semiconductor Manufacturing by 1,453.9% in the first quarter. Perseverance Asset Management International now owns 446,505 shares of the semiconductor company’s stock valued at $150,896,000 after purchasing an additional 417,771 shares during the period. 16.51% of the stock is owned by institutional investors and hedge funds.

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.