Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.8% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 2.8% on Friday . The company traded as high as $372.20 and last traded at $370.5370. 8,913,288 shares were traded during trading, a decline of 38% from the average session volume of 14,364,380 shares. The stock had previously closed at $360.39.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: DA Davidson started coverage with a Buy and a $450 price target, citing TSMC’s execution and AI-driven demand — a direct analyst catalyst supporting further upside. DA Davidson Assigns TSMC (TSM) a Buy Rating Amid AI Demand Growth
• Positive Sentiment: Company packaging advances plus a new Taiwan–U.S. trade agreement were reported as reframing TSMC’s growth outlook — this supports longer-term revenue from high‑performance and AI chips and bolsters capex visibility. Taiwan Semiconductor Packaging Breakthrough And Trade Deal Reframe Growth Outlook
• Positive Sentiment: Social and data platforms flagged a sharp January revenue surge and sustained AI infrastructure demand, reinforcing the narrative of multi‑year secular growth and supporting lofty analyst price targets. TSMC Stock (TSM) Opinions on January Revenue Surge
• Positive Sentiment: Notable hedge fund/investor activity (Druckenmiller, Tepper/Appaloosa, 13F interest from other big managers) shows continued institutional conviction, which can amplify momentum. 13F: What Druckenmiller, Dalio, Tepper, & NVIDIA are Buying Appaloosa’s David Tepper Boosts 70,000 Shares in TSMC
• Neutral Sentiment: Patent and co‑packaged optics analyses note TSMC as a leading IP player in advanced packaging/optical interconnects — strategic but longer‑term in impact. Co-Packaged Optics & Optical Interconnects Patent Landscape Analysis 2026
• Neutral Sentiment: TSMC is repeatedly featured in “best stocks” and investment‑idea roundups (Fool, Zacks). Useful for retail interest but less of an immediate price driver than corporate/earnings news. The Best Stocks to Buy With $10,000 Right Now Zacks Investment Ideas feature highlights Nvidia, Taiwan, Bloom Energy…
• Neutral Sentiment: Competitive development — startups (e.g., Taalas) and peer advancements (Micron debates) attract attention but so far don’t displace TSMC’s foundry scale; monitor as a medium‑term watch item. Chip startup Taalas raises $169 million… Is Micron Technology the Next Taiwan Semiconductor Manufacturing?
• Negative Sentiment: Geopolitical and “replacement anxiety” concerns (trade frictions, Taiwan‑China tensions) remain a persistent downside risk that can trigger volatility or disrupt supply chains. Replacement Anxiety
• Negative Sentiment: Valuation worries and articles asking whether TSMC is “too expensive” could cap near‑term gains if growth expectations cool. Is Taiwan Semiconductor Too Expensive Now?

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. UBS Group set a $330.00 price target on Taiwan Semiconductor Manufacturing in a report on Sunday, December 7th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Finally, Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Four analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average target price of $391.43.

Taiwan Semiconductor Manufacturing Trading Up 2.8%

The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The company has a market cap of $1.92 trillion, a price-to-earnings ratio of 34.79, a PEG ratio of 1.01 and a beta of 1.31. The firm has a 50 day moving average price of $326.45 and a two-hundred day moving average price of $291.85.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.18% and a net margin of 45.13%.The company had revenue of $32.50 billion for the quarter. As a group, equities analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be paid a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently bought and sold shares of TSM. Quattro Advisors LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the 4th quarter worth about $25,000. Hilton Head Capital Partners LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter worth approximately $27,000. Stephens Consulting LLC increased its holdings in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 41 shares in the last quarter. Strategic Advocates LLC increased its holdings 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. Finally, Ares Financial Consulting LLC acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $29,000. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

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.