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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 2.8% during mid-day trading on Thursday . The stock traded as high as $430.53 and last traded at $429.3540. Approximately 12,295,738 shares traded hands during trading, a decline of 8% from the average daily volume of 13,348,618 shares. The stock had previously closed at $417.72.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s August revenue reportedly accelerated sharply, reinforcing expectations that stronger AI-related demand could drive additional earnings growth and potentially exceed analyst forecasts. TSMC’s Revenue Acceleration Could Drive More Upside
• Positive Sentiment: MediaTek’s launch of a flagship smartphone chip using TSMC’s 2-nanometer technology gives the company’s newest manufacturing node near-term commercial visibility. The node could also benefit from existing partnerships involving Nvidia and other major technology customers. TSMC’s 2nm Era Is Accelerating With MediaTek
• Positive Sentiment: Analysts and investing publications continue to identify TSMC as a “picks-and-shovels” beneficiary of the AI infrastructure buildout because it manufactures advanced processors for multiple chip designers, rather than relying on one AI-chip winner. 1 AI Stock Poised to Outperform Micron and Sandisk
• Positive Sentiment: Reports describe a capacity bottleneck for advanced chips that is leaving customers unable to secure enough supply, potentially strengthening TSMC’s pricing power and long-term growth prospects. Taiwan Semiconductor Is a No-Brainer Buy On Repeat
• Neutral Sentiment: TSMC’s strong AI position and recently improved growth outlook are being weighed against GlobalFoundries’ faster percentage growth in a particular business area, highlighting that competition remains relevant even as TSMC maintains greater scale and technological leadership. There’s a Good Reason to Choose GLOBALFOUNDRIES Over Taiwan Semiconductor Manufacturing
• Negative Sentiment: A shortage of skilled workers in U.S. semiconductor manufacturing could raise hiring costs, slow factory expansion or complicate TSMC’s efforts to scale its U.S. operations. Labor Crisis in U.S. Chip Manufacturing

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Zacks Research raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Needham & Company LLC upped their price objective on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a research report on Monday, July 27th. Susquehanna upped their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday, July 16th. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Finally, Bank of America lifted their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Three equities research 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’s stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The firm’s 50-day moving average is $417.58 and its 200-day moving average is $401.26. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market capitalization of $2.23 trillion, a P/E ratio of 30.98, a price-to-earnings-growth ratio of 0.92 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued 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 39.25%. The business had revenue of $39.89 billion for the quarter. Analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Investors 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 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 25.25%.

Insider Buying and Selling

In related news, VP Lipen Yuan purchased 1,000 shares of the business’s stock in a transaction dated 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 acquisition, the vice president directly owned 6,000 shares of the company’s stock, valued at $447,000. This trade represents a 20.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Shyue-Shyh Lin bought 2,000 shares of the firm’s stock in a transaction that occurred on Sunday, July 19th. The stock was bought at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the completion of the transaction, the vice president directly owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. The trade was a 7.61% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders acquired 20,106 shares of company stock worth $1,496,473. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the business. Twin City Private Wealth LLC raised its position in Taiwan Semiconductor Manufacturing by 0.3% during the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock valued at $2,479,000 after purchasing an additional 25 shares in the last quarter. Graves Light Lenhart Wealth Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 3.4% in the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock worth $359,000 after acquiring an additional 25 shares during the last quarter. OFS Enterprise LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 4.0% in the second quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock valued at $312,000 after buying an additional 25 shares in the last quarter. Wealthcare Capital Partners LLC lifted its stake in Taiwan Semiconductor Manufacturing by 1.0% in the second quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock worth $1,244,000 after acquiring an additional 25 shares during the last quarter. Finally, Elser Financial Planning Inc raised its holdings in Taiwan Semiconductor Manufacturing by 2.4% during the second quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company’s stock worth $516,000 after purchasing an additional 25 shares in the last quarter. 16.51% of the stock is currently owned by 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.