Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 5.7% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares rose 5.7% during trading on Wednesday . The company traded as high as $374.30 and last traded at $365.1320. Approximately 16,204,330 shares traded hands during trading, an increase of 16% from the average daily volume of 13,923,974 shares. The stock had previously closed at $345.32.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Citi reaffirmed a “Buy” on TSM and raised its price target, citing accelerating demand for AI-driven chips — a clear near-term tailwind for revenue and investor sentiment. Citi Remains Bullish on Taiwan Semiconductor
• Positive Sentiment: Analyst previews (Seeking Alpha) expect TSM to beat Q1 estimates on strong AI-led demand, improving margins at advanced nodes (3nm/2nm) and upside to guidance — a catalyst for further upgrades and multiple expansion. Taiwan Semiconductor Is Setting Up For Another Beat (Preview)
• Positive Sentiment: Industry signals — including Foxconn’s strong Q1 revenue driven by unprecedented AI server demand — validate a broad hardware cycle that benefits TSM’s capacity utilization and pricing power. Apple’s Silent Partner Just Validated the Hardware Boom
• Neutral Sentiment: Investors should note TSMC’s upcoming calendar events (earnings / investor dates around April 16) that could produce volatility as guidance and capacity commentary are digested. Dear Taiwan semi stock fans, mark your calendars for April 16
• Neutral Sentiment: Market tools and screens (Zacks/Yahoo pieces) are pointing investors toward earnings catalysts and stocks likely to beat; this increases attention on TSM ahead of its report but is not a direct company-specific development. Want Better Returns? Don’t Ignore These 2 Computer and Technology Stocks Set to Beat Earnings
• Negative Sentiment: Rising geopolitical tensions around Taiwan keep valuation and operational risk elevated — investors are re‑pricing potential supply disruptions to advanced fabs, which could compress multiples if tensions escalate. Geopolitical Tension Puts TSMC Valuation And Supply Chain Resilience In Focus
• Negative Sentiment: Competitor progress (Intel’s Terafab / foundry wins) highlights intensifying rivalry in advanced packaging/foundry services — a longer‑term competitive risk to market share and pricing power if Intel secures large anchor customers. Intel’s New Orbit: From Chip Lag to Leading Edge

Analyst Ratings Changes

TSM has been the topic of a number of research analyst reports. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Weiss Ratings raised shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday, January 16th. Finally, Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a “buy” rating in a research report on Thursday, January 15th. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Up 5.7%

The company has a market cap of $1.89 trillion, a P/E ratio of 34.28, a PEG ratio of 0.93 and a beta of 1.35. The stock’s 50-day moving average price is $349.46 and its 200-day moving average price is $317.04. The company has a current ratio of 2.62, a quick ratio of 2.42 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The company had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. As a group, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a $0.9503 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 28.17%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the company’s stock in a transaction that occurred on Sunday, March 22nd. The shares were acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the transaction, the vice president owned 9,051 shares in the company, valued at $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in TSM. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its position in Taiwan Semiconductor Manufacturing by 268.2% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock valued at $566,152,000 after acquiring an additional 1,820,852 shares in the last quarter. Van ECK Associates Corp lifted its position in Taiwan Semiconductor Manufacturing by 11.1% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd bought a new position in Taiwan Semiconductor Manufacturing in the 4th quarter valued at about $495,163,000. Alliancebernstein L.P. lifted its position in Taiwan Semiconductor Manufacturing by 18.0% in the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company’s stock valued at $2,368,587,000 after acquiring an additional 1,593,786 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its position 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 own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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.