Taiwan Semiconductor Manufacturing’s (TSM) “Buy” Rating Reiterated at DA Davidson

DA Davidson restated their buy rating on shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) in a research report sent to investors on Friday,Benzinga reports. They currently have a $500.00 price target on the semiconductor company’s stock.

TSM has been the topic of several other reports. Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Barclays raised their target price on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a research note on Friday. Sanford C. Bernstein raised their target price on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Stifel Nicolaus assumed coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 target price for the company. 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 analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Up 0.1%

TSM stock opened at $413.15 on Friday. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The business’s 50 day simple moving average is $434.71 and its 200 day simple moving average is $417.82. 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 firm has a market capitalization of $2.14 trillion, a PE ratio of 26.59, a PEG ratio of 0.85 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business had revenue of $46.87 billion during the quarter. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.90 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is currently 22.27%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Shyue-Shyh Lin bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, July 21st. The stock was bought at an average price of $74.13 per share, with a total value of $74,130.00. Following the completion of the transaction, the vice president owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the purchase, the vice president directly owned 6,000 shares of the company’s stock, valued at $447,000. This represents a 20.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 13,043 shares of company stock worth $970,386 in the last 90 days. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tiger Global Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after buying an additional 1,839,600 shares during the period. Invesco Ltd. increased its stake in Taiwan Semiconductor Manufacturing by 1.1% during the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock worth $1,131,025,000 after acquiring an additional 40,842 shares during the period. Sei Investments Co. increased its stake in Taiwan Semiconductor Manufacturing by 11.8% during the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock worth $875,802,000 after acquiring an additional 274,389 shares during the period. Assenagon Asset Management S.A. increased its stake in Taiwan Semiconductor Manufacturing by 67.2% during the 3rd quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock worth $783,513,000 after acquiring an additional 690,523 shares during the period. Finally, T. Rowe Price Investment Management Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after acquiring an additional 1,313,917 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Record results and strong guidance support the long-term outlook. Third-quarter net income rose 68.7% year over year to NT$763.1 billion, while revenue increased about 51% and exceeded analyst estimates. TSMC also forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI demand remains the key growth driver. Advanced technologies represented 79% of wafer revenue, and management reported no signs of a slowdown in demand for AI and high-performance-computing chips. Full-year 2026 revenue growth is expected to be approximately 44%, while annual 2-nanometer capacity is projected to more than double in 2027. Three key takeaways for long-term investors
• Positive Sentiment: Analysts remain bullish. DA Davidson reaffirmed its Buy rating with a $500 target, while Needham raised its target to $560. Articles also highlight TSMC’s manufacturing scale and competitive moat as potential benefits from continued AI infrastructure investment. TSMC long-term investment outlook
• Neutral Sentiment: Capacity expansion is both an opportunity and a concern. TSMC is considering additional U.S. expansion, including potential involvement in Elon Musk’s proposed Texas “Terafab,” while Taiwan is planning Texas industrial parks for Nvidia suppliers. These projects could improve customer access and supply-chain resilience but increase execution and investment requirements. TSMC talks with Elon Musk’s Terafab
• Negative Sentiment: Large capital expenditures are weighing on sentiment. TSMC’s roughly $64 billion spending plan has prompted questions about returns, potential overcapacity and whether AI demand can justify the industry’s investment pace. Investors also remain concerned about AI companies’ debt financing and profitability. Why TSMC’s spending plan concerns investors
• Negative Sentiment: Sector-wide risk aversion is overpowering the earnings beat. Chip stocks are selling off amid inflation, higher interest rates, concerns about AI financing and questions about whether the AI boom has already been priced into valuations. Commentary also notes that TSMC’s strong results may have raised expectations too high. Chip stocks tumble on AI investment worries

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.