Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.2% Higher – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price rose 2.2% during trading on Friday . The company traded as high as $337.15 and last traded at $334.7340. Approximately 12,854,779 shares changed hands during trading, a decline of 22% from the average daily volume of 16,504,865 shares. The stock had previously closed at $327.37.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC projects sustained, high growth — company commentary and reporting suggest a 25% annual revenue CAGR through 2029 driven by AI chip demand and forecasted strong expansion in 2026; big investments (including large fab buildouts) underpin the growth narrative. Taiwan Semiconductor (TSM) Stock: Chip Giant Projects Explosive Growth Through 2029
• Positive Sentiment: Analysts interpret TSMC’s higher capex guidance as evidence the AI buildout will continue into 2028; forecasts call for elevated gross margins (mid-60s possible) and a multi-year revenue tail tied to full utilization of N2/N3/N5 nodes and advanced packaging. Taiwan Semiconductor: Capex Guidance Raise Suggests AI Buildout Cycle Until 2028
• Positive Sentiment: Market commentary and feature pieces label TSMC a top conviction AI play for 2026 — favorable coverage from Forbes and other outlets reinforces investor appetite and supports multiple expansion. TSM Stock: The Highest Conviction Play In The Semiconductor Stack
• Neutral Sentiment: TSMC filed routine disclosures in a Form 6‑K (executive shareholding and portfolio adjustments) and its North America unit refreshed board seats — corporate housekeeping that is unlikely to move fundamentals but is watched for governance signals. TSMC Reports December 2025 Executive Shareholding Change and Portfolio Adjustments
• Neutral Sentiment: Coverage questioning whether it’s “too late” to buy after the rally highlights valuation debate — important for near-term flows but not a change to the company’s demand outlook. Is It Too Late To Consider Taiwan Semiconductor Manufacturing (NYSE:TSM) After Its Strong Run?
• Neutral Sentiment: Market pieces comparing equipment suppliers and ecosystem links (ASML, Broadcom, etc.) underscore TSMC’s systemic importance — positive for industry positioning but not unique new news for TSMC itself. Why Taiwan Semiconductor and Meta Could Be the Hidden Bull Case for Broadcom (TSM)
• Negative Sentiment: TSMC plans to trim mature-node capacity (15–20% by 2028) to prioritize next‑gen tech — a strategic positive long-term but a potential near-term revenue mix shift and execution risk as customers migrate nodes. Taiwan Semiconductor Shrinks Old Chip Lines, Goes All-In On Next-Gen Tech
• Negative Sentiment: Some commentators note TSMC’s upside depends on a multi-year AI capex cycle; if AI datacenter spending cools earlier than expected, revenue and multiple could be at risk. Prediction: 4 Stocks That’ll Be Worth More Than Apple 5 Years From Now

Analyst Upgrades and Downgrades

TSM has been the subject of several research reports. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a report on Friday, January 16th. Needham & Company LLC lifted their price target on Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. TD Cowen raised their price objective on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a research report on Friday, January 16th. Finally, Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Stock Up 2.2%

The company’s 50-day moving average is $302.97 and its two-hundred day moving average is $276.31. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The company has a market cap of $1.73 trillion, a P/E ratio of 31.43, a P/E/G ratio of 0.93 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. The company had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.18% and a net margin of 45.13%. As a group, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be given a $0.9678 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is 23.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of TSM. Childress Capital Advisors LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 145.3% during the 3rd quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock worth $891,000 after buying an additional 1,891 shares during the last quarter. Powers Advisory Group LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $240,000. Hudson Edge Investment Partners Inc. raised its position in shares of Taiwan Semiconductor Manufacturing by 10.1% during the 2nd quarter. Hudson Edge Investment Partners Inc. now owns 236,503 shares of the semiconductor company’s stock worth $53,566,000 after acquiring an additional 21,648 shares in the last quarter. Cherokee Insurance Co purchased a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth approximately $1,248,000. Finally, Dupont Capital Management Corp increased its stake in Taiwan Semiconductor Manufacturing by 11.6% in the second quarter. Dupont Capital Management Corp now owns 89,303 shares of the semiconductor company’s stock valued at $20,226,000 after purchasing an additional 9,247 shares during the last quarter. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.