Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.9% After Insider Buying Activity

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded up 2.9% during trading on Friday following insider buying activity. The company traded as high as $429.82 and last traded at $429.07. 12,160,616 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 13,497,359 shares. The stock had previously closed at $417.01.

Specifically, SVP Shu-Hua Fang acquired 2,000 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The stock was bought at an average cost of $77.09 per share, with a total value of $154,180.00. Following the acquisition, the senior vice president owned 8,206 shares in the company, valued at approximately $632,600.54. This represents a 32.23% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Analysts Set New Price Targets

A number of brokerages have issued reports on TSM. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Stifel Nicolaus started coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday. They issued a “buy” rating and a $515.00 price target for the company. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. TD Cowen increased their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Finally, Needham & Company LLC raised their target price on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a research note on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average price target of $523.22.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is developing a three-hectare laboratory focused on faster supplier validation and resolving advanced-packaging bottlenecks. Because the site is intended to improve execution rather than serve as another multibillion-dollar fab, it could help the company respond more efficiently to AI-chip demand. TSMC Jumps as a Three-Hectare Lab Attacks Its Packaging Bottleneck
• Positive Sentiment: Goldman Sachs characterized the AI spending cycle as still being in its early stages. TSMC is positioned as a key “picks and shovels” supplier to that buildout, supporting the view that demand for its leading-edge manufacturing services may remain strong. Goldman Sachs Says the AI Trade Is Barely Started
• Positive Sentiment: Citi identified TSMC as a stock to watch if Apple introduces higher-priced foldable iPhones. A potential $2,000 foldable model and higher iPhone 18 Pro pricing could support premium chip demand, though this remains dependent on Apple’s product plans. Apple’s New Foldable iPhone Could Cost $2,000
• Positive Sentiment: Analysts and investment commentary continue to present TSMC as a central beneficiary of AI infrastructure spending, citing its relationships with major technology companies and its advanced-manufacturing leadership. TSMC Is a Better Buy Than Any of the Magnificent Seven Stocks
• Positive Sentiment: A senior vice president disclosed the purchase of 2,000 TSMC shares, increasing the executive’s holdings by 32.23%. The insider buying provides a modest confidence signal, although the transaction occurred in July and is not a current earnings update. SEC insider transaction filing
• Neutral Sentiment: TSMC’s exceptionally high margins require substantial volumes of specialized materials, including cleaning chemicals. Supplier expansion in Taiwan highlights the growing ecosystem supporting advanced AI-chip production, but does not by itself change TSMC’s financial outlook. TSMC’s 67.7% Margin Now Needs Twice the Cleaning Chemistry
• Negative Sentiment: TSMC’s planned U.S. and European expansion could increase manufacturing costs and pressure margins, even as it adds capacity closer to customers. One valuation analysis also suggested the shares may be about 9% above fair value after their strong longer-term advance. TSMC’s Global Expansion Pressures Margins Amid AI-Driven Growth

Taiwan Semiconductor Manufacturing Stock Performance

The company has a 50-day moving average of $420.70 and a 200 day moving average of $397.74. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.23 trillion, a PE ratio of 30.96, a PEG ratio of 0.95 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The firm had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. Equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.45 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 21.43%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently bought and sold shares of TSM. Twin City Private Wealth LLC raised its position in shares of 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 buying an additional 25 shares in the last quarter. Graves Light Lenhart Wealth Inc. increased its stake in Taiwan Semiconductor Manufacturing by 3.4% in the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after acquiring an additional 25 shares during the last quarter. OFS Enterprise LLC increased its stake in 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 acquiring an additional 25 shares during the last quarter. Wealthcare Capital Partners LLC lifted its stake in Taiwan Semiconductor Manufacturing by 1.0% during the second quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock worth $1,244,000 after purchasing an additional 25 shares during the last quarter. Finally, Elser Financial Planning Inc boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.4% in the 2nd 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 owned by hedge funds and other institutional investors.

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.