Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 4.4% – Here’s Why

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 4.4% during mid-day trading on Friday . The stock traded as low as $336.69 and last traded at $338.27. 13,665,834 shares were traded during mid-day trading, a decline of 3% from the average session volume of 14,036,720 shares. The stock had previously closed at $353.86.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Long-term bookings from Broadcom strengthen revenue visibility — Broadcom has secured HBM and TSMC capacity through 2028, which should support TSMC utilization and cashflow as AI demand grows. Read More.
• Positive Sentiment: TSMC is accelerating a new mega fab in southern Taiwan to add AI-focused capacity — that expansion helps address long-term supply constraints and supports revenue growth as hyperscalers scale AI deployments. Read More.
• Neutral Sentiment: Nvidia’s reallocation of TSMC capacity from China-bound H200 to Vera Rubin is a mixed signal — it may free capacity for higher-margin, next-gen GPUs (benefit to TSMC throughput/revenue) but reflects export-control uncertainty that complicates demand forecasting. Read More.
• Neutral Sentiment: Investor rotation into AI stocks (per 13F filings) shows broader appetite for AI exposure — this supports long-term demand for advanced foundry capacity, though the flows cited are toward other AI names rather than directly into TSM. Read More.
• Negative Sentiment: Export-control and China-market uncertainty could damp near-term shipments — reports that Nvidia halted China-bound H200 production underscore geopolitical risk that can reduce near-term demand visibility and weigh on sentiment. Read More.
• Negative Sentiment: Valuation and profit-taking concerns persist despite strong fundamentals — analysts and commentators continue debating TSMC’s premium multiple even as earnings/revenue remain robust, which can amplify down-days on mixed news. Read More.

Analysts Set New Price Targets

TSM has been the topic of several recent research reports. TD Cowen raised their target price on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a report on Friday, January 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Wedbush restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday, January 16th. Finally, UBS Group set a $330.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Four equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a 50 day moving average of $342.34 and a two-hundred day moving average of $300.91. The stock has a market cap of $1.75 trillion, a P/E ratio of 31.76, a P/E/G ratio of 1.00 and a beta of 1.29. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.42 and a current ratio of 2.62.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%.The company had revenue of $30.65 billion for the quarter. On average, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is 23.57%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC raised its holdings in Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after acquiring an additional 1,892 shares in the last quarter. Ignite Planners LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 4.7% during the second quarter. Ignite Planners LLC now owns 2,610 shares of the semiconductor company’s stock valued at $627,000 after purchasing an additional 116 shares during the period. Crestwood Advisors Group LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 20.3% in the second quarter. Crestwood Advisors Group LLC now owns 6,740 shares of the semiconductor company’s stock valued at $1,527,000 after purchasing an additional 1,137 shares in the last quarter. GPS Wealth Strategies Group LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.3% in the second quarter. GPS Wealth Strategies Group LLC now owns 2,439 shares of the semiconductor company’s stock valued at $552,000 after purchasing an additional 55 shares in the last quarter. Finally, First Horizon Advisors Inc. lifted its position in Taiwan Semiconductor Manufacturing by 6.7% in the second quarter. First Horizon Advisors Inc. now owns 10,214 shares of the semiconductor company’s stock worth $2,313,000 after purchasing an additional 644 shares during the period. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.