Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 6.3% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was down 6.3% on Thursday . The stock traded as low as $325.37 and last traded at $325.8880. Approximately 14,451,517 shares changed hands during trading, an increase of 3% from the average daily volume of 14,089,796 shares. The stock had previously closed at $347.75.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Columbia Threadneedle highlighted strong AI chip demand that helped TSMC rally, underlining robust end-market demand and revenue visibility for foundry leaders. Taiwan Semiconductor Manufacturing (TSM) Soared on Strong AI Chip Demand
• Positive Sentiment: TSMC has announced an aggressive 2026 capex plan ($52B–$56B) focused on advanced nodes and global fabs to capture AI compute demand — a near-term cash outflow that strengthens its long-term manufacturing moat and pricing power. Will TSM’s Aggressive Capex Plan Strengthen Its Foundry Dominance?
• Positive Sentiment: Analyses from Fool/MarketBeat reinforce the narrative that TSMC is central to the AI hardware buildout (pricing power, capacity squeeze, and strategic supplier relationships), supporting a bullish medium-term outlook for margins and cash flow. TSMC Has a Monopoly on Making AI Chips. Here’s Why This Stock Could Be the Safest Bet in the $700 Billion Capex Boom.
• Positive Sentiment: Recent insider buying reported (Bor‑Zen Tien purchased shares) gives a modest positive signal about management/insider conviction. Bor-Zen Tien Acquires 1,000 Shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock
• Neutral Sentiment: The ALPS Nautilus SMR, Nuclear & Technology ETF replaced TSM with Broadcom in a March rebalance — a small, fund-specific headwind but not indicative of broad selling pressure. New Nuclear ETF Swaps TSM for Broadcom in Rebalance
• Neutral Sentiment: Coverage pieces note large institutional flows and 13F activity across mega-caps; headlines on institutional selling are mixed and not clearly targeted at TSM, so impact is ambiguous. Institutional Investors Are Selling One of Wall Street’s Premier Trillion-Dollar Club Members (No, Not Nvidia!)
• Negative Sentiment: Geopolitical risk: recent coverage of Middle East tensions has sharpened focus on Taiwan-related supply risk (TSMC concentrates advanced node production in Taiwan), which could trigger risk-premium flows if escalation concerns rise. The Iran War Puts a Spotlight on Taiwan Risk. There’s More at Stake for Your Portfolio.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on TSM shares. TD Cowen raised their price objective on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a report on Friday, January 16th. Needham & Company LLC boosted their target price on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a “buy” rating in a report on Thursday, January 15th. Barclays upped their price target on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the company an “overweight” rating in a research report on Friday, January 16th. Freedom Capital raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Finally, Wedbush reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, February 11th. Three research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Up 0.4%

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42. The company has a market capitalization of $1.70 trillion, a P/E ratio of 30.75, a P/E/G ratio of 0.90 and a beta of 1.29. The stock has a 50-day moving average price of $348.84 and a 200-day moving average price of $312.56.

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 for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%. 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 company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be paid a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 28.36%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction that occurred on Sunday, March 22nd. The stock was acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the completion of the purchase, the vice president directly owned 9,051 shares of the company’s stock, valued at approximately $506,222.43. This represents a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of institutional investors have recently bought and sold shares of the company. Quattro Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $27,000. Stephens Consulting LLC lifted its stake in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 41 shares during the period. Strategic Advocates LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after buying an additional 36 shares in the last quarter. Finally, Ares Financial Consulting LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $29,000. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.