Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 1.6% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price shot up 1.6% during trading on Tuesday . The company traded as high as $452.88 and last traded at $452.1470. Approximately 11,205,701 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 13,341,036 shares. The stock had previously closed at $445.14.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts raised earnings forecasts. Erste Group Bank increased its FY2026 EPS estimate to $16.78 from $16.72 and its FY2027 forecast to $21.91 from $21.72, above the current full-year consensus of $16.55. The revisions signal confidence in TSMC’s earnings growth. Erste Group Bank raises TSMC earnings estimates
• Positive Sentiment: AI demand is driving capacity expansion. TSMC is investing heavily in advanced packaging to meet demand from Nvidia and other chip designers. Taiwan also broke ground on a Kaohsiung packaging park that will include TSMC technology-validation and talent-training facilities, helping address supply-chain and production bottlenecks. Taiwan breaks ground on advanced packaging park anchored by TSMC
• Positive Sentiment: Profitability has improved substantially. A report highlighted gross-margin expansion from 59% in the June 2025 quarter to 68% in June 2026, suggesting strong pricing power and operating leverage despite ongoing technology transitions. TSMC capital expenditure and margin report
• Positive Sentiment: Sector momentum provided additional support. TSMC gained alongside other semiconductor leaders as Taiwan’s Taiex reached a record intraday high. Optimism about U.S.-China discussions also lifted Asian technology stocks. Taiwan benchmark Taiex rises as tech stocks advance
• Neutral Sentiment: TSM became a heavily watched stock on Zacks, but the coverage primarily reflects investor interest rather than a specific new fundamental catalyst. Why TSM is a trending stock
• Negative Sentiment: High capital spending and ramp costs could pressure near-term results. Quarterly capital expenditure rose sharply to $15.59 billion, while management expects the next-quarter gross margin to moderate to 66% as 2-nanometer production ramps. This creates execution and profitability risks despite the stronger annual outlook. TSMC capital expenditure and margin report

Analyst Ratings Changes

Several equities analysts have weighed in on TSM shares. Stifel Nicolaus assumed coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price target for the company. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. TD Cowen raised their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Finally, Susquehanna upped their price target 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. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $2.35 trillion, a PE ratio of 32.62, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The stock’s 50-day moving average is $417.87 and its two-hundred day moving average is $402.75.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The business had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.25%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan acquired 1,000 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were bought at an average price of $74.50 per share, with a total value of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares of the company’s stock, valued at $447,000. The trade was a 20.00% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, VP Shyue-Shyh Lin bought 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Sunday, July 19th. The stock was acquired at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the purchase, the vice president owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders purchased 19,106 shares of company stock worth $1,417,283. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in TSM. Hilton Head Capital Partners LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $27,000. Strategic Advocates LLC grew its stake in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 36 shares in the last quarter. Basepoint Wealth LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $31,000. Evolution Wealth Management Inc. increased its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the period. Finally, Cedar Mountain Advisors LLC raised its position in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 30 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.