Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 6.8% – Time to Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price shot up 6.8% during mid-day trading on Tuesday . The company traded as high as $338.41 and last traded at $337.9040. 18,326,589 shares were traded during mid-day trading, an increase of 29% from the average session volume of 14,193,645 shares. The stock had previously closed at $316.50.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Analyst/feature pieces argue TSMC is more than an AI play and recent pullbacks create a buying opportunity, highlighting durable demand and secular growth in chips. TSMC: Much More Than Just An AI Play, Recent Jitters Present A Great Opportunity
• Positive Sentiment: TSMC confirmed plans to install equipment and begin mass production of 3nm wafers in Japan with a 2028 target — a major, high-margin node and strategic geographic diversification that supports long-term capacity for AI chips. TSMC plans 3-nanometre chip production launch in Japan in 2028
• Positive Sentiment: Pre-market coverage noted TSMC extended gains on announcements about Japan expansion and AI-related demand, reinforcing investor enthusiasm around strategic investments. TSMC Stock (TSM) Extends Gains on AI Chip Japan Expansion Plans
• Positive Sentiment: Reported insider buying (director-level activity) signals confidence from insiders and can support sentiment if sustained. TSMC Insider Makes Bold New Bet on Chip Giant’s Future
• Positive Sentiment: Coverage highlighting TSMC as a top pick in the AI supply chain and inclusion in analyst-favored lists supports momentum and analyst conviction narratives. Three AI Chip Stocks Analysts Love More Than Nvidia (NVDA) Right Now
• Positive Sentiment: Strong returns from Taiwan-focused tech funds (Nomura) point to broader buying into Taiwan’s AI supply chain, indirectly supporting TSMC demand narratives. Nomura Taiwan High Tech Fund Returns 164%, Outperforms 99% of Peers
• Positive Sentiment: Unusually large options activity — heavy call buying — has been reported, which often signals speculative bullish positioning ahead of catalysts (earnings, guidance). Taiwan Semiconductor Manufacturing Sees Unusually Large Options Volume (NYSE:TSM)
• Neutral Sentiment: TSMC will report Q1 2026 results before the open on April 16 — a key near-term event that could swing the stock materially depending on revenue, margins and outlook. How Big Will Taiwan Semiconductor’s Beat Be on April 16?
• Neutral Sentiment: Increased investor search interest and coverage raise liquidity and attention but are not directional by themselves. Investors Heavily Search Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Here is What You Need to Know
• Negative Sentiment: Zacks flags potential FY26 margin pressure as TSMC ramps costly overseas fabs; management will need strong AI-chip demand, utilization and scale to offset higher capex and operating costs. This is the main near-term risk that likely explains some of today’s weakness. Can TSM Meet FY26 Margin Guidance Amid Fab Expansion Cost Pressures?

Analysts Set New Price Targets

TSM has been the topic of a number of research reports. Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a report on Thursday, January 15th. Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. UBS Group set a $330.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Finally, Dbs Bank upgraded shares of Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a report on Friday, January 23rd. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Down 0.7%

The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.42 and a current ratio of 2.62. The business has a 50 day simple moving average of $348.86 and a 200-day simple moving average of $314.51. The firm has a market capitalization of $1.76 trillion, a price-to-earnings ratio of 31.84, a P/E/G ratio of 0.93 and a beta of 1.34.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared 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. The ex-dividend date of this dividend 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 is 28.36%.

Insider Activity

In other news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Sunday, March 22nd. The shares were purchased at an average price of $55.93 per share, with a total value of $55,930.00. Following the transaction, the vice president owned 9,051 shares in the company, valued at $506,222.43. This represents a 12.42% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.11% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $27,000. Stephens Consulting LLC boosted its stake in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after buying an additional 41 shares during the period. Strategic Advocates LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $29,000. Institutional investors and hedge funds 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.