Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 6.2% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were up 6.2% on Friday. The company traded as high as $380.72 and last traded at $375.1530. 23,717,514 shares were traded during mid-day trading, an increase of 80% from the average daily volume of 13,205,001 shares. The stock had previously closed at $353.10.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Taiwan tightened short-selling rules and prepared a reported $15 billion fund to support its markets, helping lift TSMC shares in premarket trading after the regional chip rout. Benzinga article
• Positive Sentiment: Nvidia reportedly wants TSMC to make advanced memory chips. If TSMC pursues the opportunity, it could broaden its role in AI hardware and deepen ties with a major customer; the report describes a possibility, not a confirmed project. TipRanks article
• Positive Sentiment: Sanford C. Bernstein raised its price target to $600 from $554 and reiterated an “outperform” rating, signaling confidence in TSMC’s prospects despite the recent sector weakness. MarketBeat analyst update
• Neutral Sentiment: TSMC’s position as a leading manufacturer for Nvidia, AMD and other chip designers supports exposure to AI demand across competing customers. Some coverage also argues the shares trade below their usual valuation range, though that does not ensure a near-term recovery. The Motley Fool article
• Negative Sentiment: The rebound follows a steep regional chip-stock selloff amid worries about AI valuations, spending expectations and growth. That market-wide pressure could keep TSM volatile even as its manufacturing business benefits from AI demand. 24/7 Wall St. article

Wall Street Analyst Weigh In

TSM has been the subject of several research reports. TD Cowen lifted their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a report on Friday, October 16th. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a report on Thursday, October 15th. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Finally, Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a “buy (b)” rating to a “hold (c+)” rating in a research note on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing Stock Up 6.2%

The firm’s fifty day simple moving average is $431.68 and its 200-day simple moving average is $400.77. The company has a market cap of $1.95 trillion, a PE ratio of 24.14, a P/E/G ratio of 0.76 and a beta of 1.44. 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 issued 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. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. During the same period last year, the company posted $2.92 EPS. The company’s revenue was up 41.2% on a year-over-year basis. As a group, equities research analysts expect 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 announced 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 drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 22.07%.

Insiders Place Their Bets

In related news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, with a total value of $74,500.00. Following the completion of the transaction, the vice president owned 6,000 shares of the company’s stock, valued at approximately $447,000. This represents a 20.00% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders acquired a total of 5,428 shares of company stock worth $411,021 over the last ninety days. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of large investors have recently made changes to their positions in TSM. Tiger Global Management LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares during the last quarter. Fundsmith LLP bought a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $548,465,000. Assenagon Asset Management S.A. acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth $490,461,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Taiwan Semiconductor Manufacturing during the 3rd quarter worth $444,923,000. Finally, Aberdeen Group plc grew its holdings in Taiwan Semiconductor Manufacturing by 449.6% during the 3rd quarter. Aberdeen Group plc now owns 642,465 shares of the semiconductor company’s stock worth $293,086,000 after acquiring an additional 525,566 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.