Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 5.7% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shot up 5.7% during trading on Tuesday . The company traded as high as $425.40 and last traded at $425.0350. Approximately 18,112,433 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 14,069,820 shares. The stock had previously closed at $402.30.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reportedly plans to raise chipmaking prices by 5% to 10% in 2027 for both advanced and mature nodes, boosting expectations for margin expansion and stronger pricing power. TSMC to raise chipmaking prices by up to 10% in 2027, Nikkei Asia reports
• Positive Sentiment: Recent coverage highlighted blowout Q2 results, with TSMC posting strong earnings and raising its outlook, reinforcing the view that AI-related chip demand remains robust. Bull of the Day: Taiwan Semi (TSM)
• Positive Sentiment: Analysts and market commentators continue to frame TSMC as a key AI infrastructure winner, with multiple articles pointing to sustained demand, capacity expansion, and improving long-term growth visibility. TSMC expects ‘strong, multi-year’ demand for AI chips as it ramps up Arizona investment
• Neutral Sentiment: Broader semiconductor stocks also rebounded after last week’s selloff, suggesting TSMC is benefiting from a sector-wide recovery in sentiment. Chip stocks extend global rebound following last week’s rout
• Negative Sentiment: One cautionary theme is that TSMC’s aggressive Arizona expansion is raising capital spending and operational execution concerns, including labor and infrastructure constraints, which could pressure near-term sentiment. TSMC expects ‘strong, multi-year’ demand for AI chips as it ramps up Arizona investment

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Susquehanna boosted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. DA Davidson increased their price target on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a report on Friday. Needham & Company LLC raised their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research note on Thursday, April 16th. Finally, Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a report on Saturday. Three 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 stock. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average target price of $490.00.

Taiwan Semiconductor Manufacturing Stock Performance

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 company has a market cap of $2.20 trillion, a PE ratio of 30.67, a P/E/G ratio of 0.95 and a beta of 1.36. The business’s fifty day moving average is $426.76 and its 200-day moving average is $379.20.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%. The business had revenue of $39.89 billion during the quarter. As a group, research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.83 EPS for the current fiscal 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 $1.1136 dividend. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 25.32%.

Insider Buying and Selling

In related news, VP Lipen Yuan purchased 1,000 shares of the business’s stock in a transaction on Monday, June 22nd. The stock was acquired at an average price of $79.19 per share, with a total value of $79,190.00. Following the completion of the acquisition, the vice president owned 5,000 shares of the company’s stock, valued at approximately $395,950. This trade represents a 25.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have purchased 6,857 shares of company stock valued at $512,334. 1.11% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TSM. Brighton Jones LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 20.9% during the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after buying an additional 1,892 shares in the last quarter. Gamco Investors INC. ET AL purchased a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter worth $701,000. Bank of Nova Scotia lifted its position in shares of Taiwan Semiconductor Manufacturing by 12.8% in the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock valued at $3,556,000 after acquiring an additional 1,784 shares in the last quarter. FWL Investment Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 26.5% in the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 53 shares during the period. Finally, Main Street Financial Solutions LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter worth about $270,000. 16.51% of the stock is currently owned by institutional investors.

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.