Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Falls 1.8% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price dropped 1.8% during mid-day trading on Monday. The company traded as low as $398.29 and last traded at $398.7150. 12,709,994 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 13,039,097 shares. The stock had previously closed at $406.13.

Key Headlines Impacting 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

A number of equities analysts recently commented on the company. Needham & Company LLC lifted their price target on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a research note on Thursday, October 15th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a research report on Friday, October 16th. Finally, TD Cowen boosted their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a 50 day moving average of $434.04 and a 200 day moving average of $400.48. The stock has a market capitalization of $2.05 trillion, a P/E ratio of 26.05, a P/E/G ratio of 0.82 and a beta of 1.44.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.45 by $0.15. The firm had revenue of $46.72 billion for the quarter, compared to the consensus estimate of $45.67 billion. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. Taiwan Semiconductor Manufacturing’s quarterly revenue was up 41.2% compared to the same quarter last year. During the same period last year, the firm posted $2.92 EPS. Equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 1.1%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 22.27%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the business’s stock in a transaction on Sunday, November 1st. The stock was bought at an average cost of $71.49 per share, with a total value of $71,490.00. Following the acquisition, the vice president owned 8,000 shares of the company’s stock, valued at $571,920. The trade was a 14.29% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last three months, insiders have bought 7,043 shares of company stock valued at $529,416. 1.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently modified their holdings of the stock. Gen Wealth Partners Inc grew its holdings in shares of Taiwan Semiconductor Manufacturing by 288.0% during the third quarter. Gen Wealth Partners Inc now owns 745 shares of the semiconductor company’s stock valued at $340,000 after buying an additional 553 shares in the last quarter. Cpwa LLC raised its position in Taiwan Semiconductor Manufacturing by 3.3% during the third quarter. Cpwa LLC now owns 1,400 shares of the semiconductor company’s stock valued at $622,000 after buying an additional 45 shares during the period. United Capital Management of KS Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 0.7% in the 3rd quarter. United Capital Management of KS Inc. now owns 4,066 shares of the semiconductor company’s stock worth $1,855,000 after acquiring an additional 29 shares in the last quarter. Freemont Capital Pte Ltd purchased a new stake in Taiwan Semiconductor Manufacturing in the 3rd quarter worth about $958,000. Finally, Gryphon Financial Partners LLC boosted its position in Taiwan Semiconductor Manufacturing by 8.8% during the 3rd quarter. Gryphon Financial Partners LLC now owns 14,562 shares of the semiconductor company’s stock worth $6,643,000 after acquiring an additional 1,182 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Taiwan Semiconductor Manufacturing Company Profile

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.