Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.6% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price fell 2.6% during trading on Friday . The company traded as low as $329.10 and last traded at $330.69. 11,953,843 shares changed hands during trading, a decline of 22% from the average session volume of 15,248,748 shares. The stock had previously closed at $339.55.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts and sector writeups highlight TSMC as a core beneficiary of the AI boom — Zacks groups TSMC with NVIDIA as AI chip winners, underscoring sustained data‑center demand that supports TSMC’s revenue and margin outlook. Read More.
• Positive Sentiment: NVIDIA’s CEO publicly backing TSMC’s global expansion and noting rising AI memory needs reinforces TSMC’s strategic role in next‑generation AI supply — a direct demand cue for TSMC’s advanced-node capacity. Read More.
• Positive Sentiment: NVIDIA winning approval for a $105M Taiwan hub and deepening local ties further cements the NVIDIA–TSMC ecosystem, implying more fab capacity demand and partnership stability. Read More.
• Positive Sentiment: Broker commentary and upgrades (Goldman/Morgan Stanley mentions, margin expansion notes) and coverage pieces emphasize TSMC’s improving profitability and leadership position — supportive for medium‑term analyst estimates and investor positioning. Read More.
• Positive Sentiment: Broader investor guides and AI stock roundups continue to list TSMC as a core AI‑infrastructure play, reinforcing demand narrative among long‑term investors. Read More.
• Neutral Sentiment: Zacks notes elevated investor attention on TSMC — this raises near‑term liquidity and volatility but doesn’t change the company’s underlying fundamentals. Read More.
• Neutral Sentiment: Coverage roundups (MSN/Wall Street take) and interim data writeups summarize the company’s strong results and higher capex but add little incremental surprise; useful for sentiment but not clearly catalytic. Read More. Read More.
• Negative Sentiment: Large leveraged liquidations in crypto markets (Bitcoin) drove risk‑off flows that contributed to broader market volatility and intraday weakness in chips and tech, a likely headwind for TSMC’s short‑term price action. Read More.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on TSM shares. Freedom Capital raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Argus raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Weiss Ratings restated a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Susquehanna boosted their price target on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a “positive” rating in a research report on Friday, October 10th. Finally, Itau BBA Securities initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, October 7th. They issued an “outperform” rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $381.67.

Taiwan Semiconductor Manufacturing Price Performance

The company has a market cap of $1.71 trillion, a price-to-earnings ratio of 31.05, a PEG ratio of 0.98 and a beta of 1.29. The company has a 50-day simple moving average of $308.61 and a 200-day simple moving average of $280.04. The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.47 and a current ratio of 2.69.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. This represents a $3.87 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Tuesday, March 17th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s payout ratio is 28.64%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently bought and sold shares of TSM. Stephens Consulting LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 82.0% during 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 during the last quarter. Ares Financial Consulting LLC purchased a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $29,000. Heartwood Wealth Advisors LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter valued at $32,000. Resources Management Corp CT ADV acquired a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter worth about $32,000. Finally, Mid American Wealth Advisory Group Inc. acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $33,000. Hedge funds and other 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.