Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares dropped 2% during trading on Wednesday . The company traded as low as $434.53 and last traded at $437.6530. Approximately 10,085,048 shares traded hands during trading, a decline of 27% from the average daily volume of 13,770,723 shares. The stock had previously closed at $446.69.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s CEO said the company remains confident in multi-year growth as AI demand for advanced semiconductors stays strong, reinforcing the company’s central role in the AI supply chain. TSMC boss bets big on AI growth, says he’d ‘like’ to hike chip prices
• Positive Sentiment: Brokerage coverage remains favorable, with TSMC receiving an average “Buy” rating, suggesting Wall Street still sees upside potential. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Given Average Rating of “Buy” by Brokerages
• Positive Sentiment: Several articles highlight TSMC as a core winner from AI infrastructure spending, calling it hard to replace in the compute supply chain and a key beneficiary of hyperscaler demand. Taiwan Semiconductor Manufacturing (TSM) Sits at the Absolute Center of the AI Compute Supply Chain
• Neutral Sentiment: Coverage comparing TSMC with Micron and other manufacturing peers keeps the stock in focus, but these pieces are more valuation and industry-watch commentary than direct catalysts. Got $10,000? TSM vs Micron: The Better Buy in 2026
• Negative Sentiment: Investor concern lingers around supply constraints, as the CEO warned that AI chip shortages may persist for years and that demand is still outpacing capacity, which could pressure delivery timelines and margins. TSMC Stock Price Drops as CEO Warns Chip Supply Struggles to Meet AI Demand

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, March 20th. Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Needham & Company LLC upped their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Finally, DA Davidson reiterated a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Buy” and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Down 3.8%

The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a market cap of $2.22 trillion, a price-to-earnings ratio of 35.62, a PEG ratio of 1.27 and a beta of 1.38. The firm has a fifty day moving average price of $386.53 and a 200-day moving average price of $347.24.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion during the quarter. As a group, sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.04%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. The trade was a 7.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Bor-Zen Tien purchased 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was bought at an average price of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. The trade was a 22.10% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 3,346 shares of company stock valued at $218,005 in the last ninety days. Company insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Twin City Private Wealth LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 0.3% during the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock valued at $2,479,000 after purchasing an additional 25 shares during the period. Financial Life Planners lifted its holdings in Taiwan Semiconductor Manufacturing by 3.4% in the first quarter. Financial Life Planners now owns 786 shares of the semiconductor company’s stock worth $266,000 after purchasing an additional 26 shares during the period. Corus Family Wealth Advisors grew its position in Taiwan Semiconductor Manufacturing by 1.1% in the 1st quarter. Corus Family Wealth Advisors now owns 2,401 shares of the semiconductor company’s stock valued at $811,000 after buying an additional 26 shares in the last quarter. Lodestar Private Asset Management LLC grew its position in Taiwan Semiconductor Manufacturing by 0.9% in the 1st quarter. Lodestar Private Asset Management LLC now owns 2,896 shares of the semiconductor company’s stock valued at $979,000 after buying an additional 27 shares in the last quarter. Finally, Mitchell Sinkler & Starr PA increased its stake in Taiwan Semiconductor Manufacturing by 1.9% during the 4th quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock valued at $450,000 after buying an additional 28 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.