Taiwan Semiconductor Manufacturing (NYSE:TSM) Cut to Hold at Zacks Research

Zacks Research cut shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

Several other research firms also recently weighed in on TSM. DA Davidson upgraded Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Friday, February 13th. Barclays lifted their price objective on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the company an “overweight” rating in a research report on Friday, January 16th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. UBS Group set a $330.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Sunday, December 7th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

TSM opened at $339.56 on Monday. The company’s 50 day moving average is $348.15 and its 200 day moving average is $308.21. The company has a current ratio of 2.62, a quick ratio of 2.42 and a debt-to-equity ratio of 0.17. The company has a market cap of $1.76 trillion, a price-to-earnings ratio of 31.88, a PEG ratio of 0.95 and a beta of 1.29. Taiwan Semiconductor Manufacturing has a 12-month low of $134.25 and a 12-month high of $390.20.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 28.36%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently bought and sold shares of the stock. Childress Capital Advisors LLC raised its position in shares of 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 valued at $891,000 after buying an additional 1,891 shares in the last quarter. Shannon River Fund Management LLC purchased a new position in Taiwan Semiconductor Manufacturing in the third quarter worth about $2,430,000. Vanguard Personalized Indexing Management LLC grew its position in Taiwan Semiconductor Manufacturing by 9.4% in the third quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock worth $28,470,000 after acquiring an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. increased its stake in Taiwan Semiconductor Manufacturing by 28.6% during the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock worth $10,394,000 after acquiring an additional 8,284 shares during the last quarter. Finally, Hollencrest Capital Management increased its stake in Taiwan Semiconductor Manufacturing by 125.3% during the third quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock worth $1,457,000 after acquiring an additional 2,901 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC claims a 72% share of the global chip market and says AI demand is at record highs — supports a strong revenue/capacity outlook for 2026. TSMC Claims 72% Of Global Chip Market As AI Demand Hits Record Highs
• Positive Sentiment: Analysts and commentators still call TSMC a buy on the “Nvidia flip” and AI capex tailwinds — market positioning as the dominant foundry benefits from expanding AI GPU and datacenter spend. TSMC Stock Is Still a Buy as the ‘Nvidia Flip’ Reshapes Tech
• Positive Sentiment: Investor commentary highlights TSMC’s durable competitive moat (advanced process tech) as a reason there’s still time to buy after recent pullbacks. Think It’s Too Late to Buy Taiwan Semiconductor Manufacturing Company Stock? Here’s the 1 Reason Why There’s Still Time.
• Positive Sentiment: Unusual high volume of call option buying points to bullish positioning by some investors/speculators expecting further upside. Investors Buy High Volume of Call Options on Taiwan Semiconductor Manufacturing (NYSE:TSM)
• Neutral Sentiment: Market commentary frames the recent ~13% pullback as a buying opportunity given long-term growth, but flags that valuation remains elevated versus history. TSMC Stock Looks Like a Table-Pounding Gift After That 13% Correction
• Neutral Sentiment: Comparisons to Nvidia and other peers emphasize Nvidia’s faster growth and stronger near-term upside, creating a relative-performance debate for investors weighing TSM vs NVDA. NVDA vs. TSM: Which Semiconductor Powerhouse Offers More Upside?
• Negative Sentiment: Zacks downgraded TSMC from “strong-buy” to “hold,” signaling some analyst caution on near-term upside and contributing to selling pressure. Zacks.com
• Negative Sentiment: Benzinga reports Tesla has “snubbed” TSMC as it builds an in-house/alternative chip supply chain — a reminder that major customers can shift sourcing and that client concentration risk exists. Tesla Just Snubbed TSMC — Musk Is Quietly Building A Sovereign Chip Chain
• Negative Sentiment: Reports flag geopolitical and supply risks (e.g., helium shortage, Strait of Hormuz disruptions) that could interrupt fabs and create cost/production shocks for TSMC and its partners. Nvidia, TSMC Are Dangerously Exposed To A Hidden War Risk (Hint: Not Oil)

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.