Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.5% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 4.5% during trading on Tuesday . The stock traded as low as $326.90 and last traded at $326.9580. 22,543,395 shares traded hands during mid-day trading, an increase of 32% from the average session volume of 17,071,098 shares. The stock had previously closed at $342.40.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Blowout Q4 results and strong profitability support the bullish case — record revenue and margins underline TSMC’s dominant position in AI chip manufacturing. Taiwan Semiconductor: AI Value Stock Hiding In Plain Sight
• Positive Sentiment: Management is ramping capacity aggressively for AI: TSMC raised planned 2026 capex into the $52–$56 billion range, signaling conviction in sustained AI demand and revenue tailwinds. Short Squeeze Season: Is Super Micro Ready to Fly?
• Positive Sentiment: Operational expansion: TSMC is accelerating advanced packaging capacity and fast-tracking additional fabs (including more Arizona land), which reduces supply constraints for customers. TSMC Ramps Up AI Chip Packaging While Nvidia Controls Most 2026 Capacity
• Positive Sentiment: Wall Street and large investors are supportive — price-target lifts, bullish analyst commentary and notable buys (e.g., Cathie Wood) add conviction beneath the rally. TSMC Price Target Raised to $370
• Neutral Sentiment: TSMC’s results are reverberating across the supply chain (e.g., rallies in server and equipment suppliers), so market moves include second‑order beneficiaries as well as short‑term trading flows. Who Are the Biggest Winners from TSMC’s Blowout Quarterly Report?
• Neutral Sentiment: High-profile media and commentators (Jim Cramer, sector pieces) are amplifying the narrative that TSMC is the infrastructure backbone for AI — supporting sentiment but also feeding momentum trading. TSMC’s Call Was Amazing, Says Jim Cramer
• Negative Sentiment: CEO C.C. Wei explicitly warned he’s “very nervous” about AI demand and highlighted a potential $56 billion “disaster” to avoid in 2026 — comments that can spook investors about demand visibility and the risk of overbuilding capacity. ‘I’m Also Very Nervous’ TSMC CEO C.C. Wei says on AI Demand
• Negative Sentiment: Valuation and execution risk: bullish pricing assumes sustained ~30% revenue CAGR; analysts warn that any hyperscaler slow‑down or execution hiccup (and very high capex) could pressure returns. AI-Driven Demand Fuels TSM’s Growth
• Negative Sentiment: Geopolitical and supply‑chain shifts (U.S.–Taiwan moves to relocate parts of the chain) create execution complexity and short‑term uncertainty around costs and timing. What the U.S.-Taiwan deal means for the island’s ‘silicon shield’

Analyst Upgrades and Downgrades

TSM has been the topic of a number of recent research reports. TD Cowen raised their target price on shares of Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a report on Friday. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday. Cowen reissued a “hold” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday. The Goldman Sachs Group restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, December 29th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Stock Down 4.5%

The firm’s fifty day moving average is $300.62 and its two-hundred day moving average is $274.95. The firm has a market cap of $1.69 trillion, a price-to-earnings ratio of 30.70, a P/E/G ratio of 0.71 and a beta of 1.29. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. The company had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. On average, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company 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 is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. The ex-dividend date is Tuesday, March 17th. This represents a $3.87 annualized dividend and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is 23.57%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently modified their holdings of TSM. BXM Wealth LLC bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth about $12,688,000. CV Advisors LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 524.0% during the 4th quarter. CV Advisors LLC now owns 9,316 shares of the semiconductor company’s stock valued at $2,831,000 after purchasing an additional 7,823 shares in the last quarter. Secure Asset Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 0.9% in the 4th quarter. Secure Asset Management LLC now owns 16,828 shares of the semiconductor company’s stock worth $5,114,000 after purchasing an additional 154 shares during the last quarter. Independence Bank of Kentucky raised its holdings in shares of Taiwan Semiconductor Manufacturing by 17.4% in the 4th quarter. Independence Bank of Kentucky now owns 2,054 shares of the semiconductor company’s stock worth $624,000 after purchasing an additional 305 shares in the last quarter. Finally, Florida Trust Wealth Management Co raised its holdings in shares of Taiwan Semiconductor Manufacturing by 9.6% in the 4th quarter. Florida Trust Wealth Management Co now owns 35,781 shares of the semiconductor company’s stock worth $10,873,000 after purchasing an additional 3,131 shares in the last quarter. Institutional investors and hedge funds 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.