Taiwan Semiconductor Manufacturing (NYSE:TSM) Share Price Breaks Below 200 Day Moving Average – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $400.48 and traded as low as $391.61. Taiwan Semiconductor Manufacturing shares last traded at $394.8110, with a volume of 14,433,232 shares changing hands.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Industry commentary says strong semiconductor sales and AI infrastructure spending could benefit TSMC. As the foundry for chip designers including Nvidia, AMD, Apple and Broadcom, TSMC can participate in demand across multiple AI-chip makers. Article: 4 Semiconductor Stocks to Buy as Q3 Sales Soar on Robust AI Demand
• Positive Sentiment: A comparison of TSMC and ASML highlights TSMC’s advanced-chip manufacturing exposure to AI demand. Separate commentary also points to the potential of its next-generation process technology, though these are investment themes rather than new company guidance. Article: Better AI Semiconductor Monopoly Stock: Taiwan Semiconductor vs. ASML
• Positive Sentiment: Vice President Lipen Yuan reportedly bought 1,000 shares, increasing his direct holding by 14.29%. The insider purchase may signal confidence, though it is small relative to TSMC’s scale. Article: Taiwan Semiconductor Manufacturing VP Buys Stock
• Negative Sentiment: The approaching November sales update may keep investors cautious: the report is the first monthly reading of the new quarter, with $53.3 billion cited as the quarterly revenue hurdle. Article: TSMC Stocks Move Lower as November Sales Data Face a $53.3 Billion Quarterly Hurdle
• Negative Sentiment: Broader retreat from AI shares, including reports that hedge funds have turned underweight the sector, could weigh on TSMC despite its company-specific AI exposure. Article: AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI

Wall Street Analyst Weigh In

Several research firms have recently commented on TSM. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, October 21st. Barclays increased their price target on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. Needham & Company LLC increased their price target on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Finally, Wall Street Zen downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Price Performance

The company has a 50-day simple moving average of $434.04 and a 200-day simple moving average of $400.48. The stock has a market cap of $2.05 trillion, a PE ratio of 25.41, a PEG ratio of 0.82 and a beta of 1.44. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 EPS for the quarter, topping the consensus estimate of $4.45 by $0.15. The company had revenue of $46.72 billion for the quarter, compared to analyst estimates of $45.67 billion. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business’s revenue was up 41.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.92 EPS. Sell-side analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.1%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is 22.07%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 1,000 shares of the firm’s stock in a transaction that occurred on Sunday, November 1st. The shares were purchased at an average price of $71.49 per share, with a total value of $71,490.00. Following the completion of the acquisition, the vice president owned 8,000 shares in the company, valued at approximately $571,920. This represents a 14.29% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have bought a total of 7,043 shares of company stock valued at $529,416 in the last ninety days. 1.11% of the stock is owned by company insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently bought and sold shares of the company. 626 Financial LLC acquired a new position in Taiwan Semiconductor Manufacturing during the third quarter worth about $258,000. Cornerstone Wealth Management LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 6.0% in the third quarter. Cornerstone Wealth Management LLC now owns 11,868 shares of the semiconductor company’s stock valued at $5,414,000 after purchasing an additional 668 shares in the last quarter. Triton Wealth Management PLLC grew its position in shares of Taiwan Semiconductor Manufacturing by 34.5% in the third quarter. Triton Wealth Management PLLC now owns 5,199 shares of the semiconductor company’s stock valued at $2,372,000 after purchasing an additional 1,333 shares during the last quarter. Csenge Advisory Group grew its position in shares of Taiwan Semiconductor Manufacturing by 10.5% in the third quarter. Csenge Advisory Group now owns 9,983 shares of the semiconductor company’s stock valued at $4,554,000 after purchasing an additional 948 shares during the last quarter. Finally, Gen Wealth Partners Inc grew its position in shares of Taiwan Semiconductor Manufacturing by 288.0% in the third quarter. Gen Wealth Partners Inc now owns 745 shares of the semiconductor company’s stock valued at $340,000 after purchasing an additional 553 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

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.