Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.8% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price fell 1.8% during trading on Monday . The stock traded as low as $398.19 and last traded at $404.0720. 14,594,813 shares were traded during mid-day trading, an increase of 4% from the average session volume of 14,027,349 shares. The stock had previously closed at $411.68.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC announced a quarterly dividend increase to $1.1136 per share, a 17.2% raise from the prior payout, signaling confidence in cash flow and rewarding shareholders.
• Positive Sentiment: The company approved roughly $31.28 billion in capital spending to expand advanced chip production, supporting its AI, 5G, and high-performance computing growth outlook.
• Positive Sentiment: Articles highlighted TSMC’s advanced-node leadership as central to the AI chip cycle, reinforcing its strategic importance as demand for cutting-edge semiconductors grows. Article Title
• Positive Sentiment: New coverage also pointed to a surprise Sony-TSMC collaboration tied to AI-ready image sensors, adding to sentiment around future demand opportunities. Article Title
• Neutral Sentiment: Some investors are questioning whether the stock has become expensive after a big year-to-date run, so valuation concerns may limit upside even as fundamentals remain strong.
• Negative Sentiment: TSMC shares also face periodic pressure from broader chip-sector selloffs and concerns that heavy AI spending could cool, which could trigger profit-taking in the stock. Article Title

Analyst Upgrades and Downgrades

Several research firms have commented on TSM. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Argus raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Dbs Bank raised Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a research report on Friday, January 23rd. DA Davidson reaffirmed a “buy” rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Finally, Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.51 and a quick ratio of 2.32. The stock has a market capitalization of $2.07 trillion, a P/E ratio of 33.28, a price-to-earnings-growth ratio of 1.16 and a beta of 1.39. The company has a fifty day moving average of $363.15 and a two-hundred day moving average of $333.46.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The firm had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%. On average, equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.25 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. The ex-dividend date is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 24.71%.

Insider Buying and Selling

In related news, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction on Sunday, March 22nd. The stock was bought at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the purchase, the vice president directly owned 9,051 shares in the company, valued at approximately $506,222.43. The trade was a 12.42% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders purchased 1,346 shares of company stock valued at $78,185 in the last three months. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Van ECK Associates Corp boosted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after buying an additional 1,750,824 shares during the period. Life Cycle Investment Partners Ltd acquired a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $495,163,000. T. Rowe Price Investment Management Inc. boosted its position in shares of Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after buying an additional 1,313,917 shares during the period. SurgoCap Partners LP acquired a new position in shares of Taiwan Semiconductor Manufacturing during the third quarter worth approximately $360,443,000. Finally, Capital Research Global Investors boosted its position in shares of Taiwan Semiconductor Manufacturing by 66.3% during the fourth quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after buying an additional 1,281,648 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.