Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 6.9% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded down 6.9% on Wednesday . The stock traded as low as $443.47 and last traded at $444.6240. Approximately 18,437,948 shares were traded during trading, an increase of 32% from the average daily volume of 13,955,866 shares. The stock had previously closed at $477.57.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC was highlighted as a key winner from the AI capex boom, with multiple articles arguing the stock still has room to run because of rising demand for advanced chips and manufacturing leadership. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: Analysts continue to sound constructive on TSMC, including a recent earnings estimate increase and a consensus “Buy” rating, which supports the longer-term bull case. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Receives Consensus Rating of “Buy” from Analysts
• Positive Sentiment: President Trump said TSMC is doubling the size of its chipmaking facilities in Arizona, reinforcing the company’s U.S. expansion story and potential strategic importance. Trump says Taiwan is doubling the size of chipmaking plant in Arizona
• Positive Sentiment: TSMC also hit a 52-week high, reflecting strong recent momentum and investor confidence in its AI-linked growth outlook. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Hit a 52 Week High, Can the Run Continue?
• Neutral Sentiment: A TSMC vice president bought 1,000 shares, a modest insider confidence signal, but not a major near-term catalyst. Taiwan Semiconductor Manufacturing (NYSE:TSM) VP Acquires $76,640.00 in Stock
• Negative Sentiment: TSMC shares were hit by a broader semiconductor selloff after Bank of America flagged “bubble risk,” suggesting some investors are taking profits after the stock’s strong AI-driven rally. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Barclays upped their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 22nd. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the company a “positive” rating in a research report on Monday, June 22nd. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Bank of America upped their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Finally, DA Davidson reiterated a “buy” rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average target price of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The stock has a market cap of $2.31 trillion, a PE ratio of 36.99, a price-to-earnings-growth ratio of 1.15 and a beta of 1.38. The business has a 50 day moving average price of $417.94 and a two-hundred day moving average price of $366.08.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion for the quarter. As a group, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a $1.1136 dividend. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.12%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average price of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction on Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, with a total value of $79,190.00. Following the transaction, the vice president directly owned 5,000 shares in the company, valued at $395,950. The trade was a 25.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 5,496 shares of company stock valued at $404,567. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently made changes to their positions in the business. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Hilton Head Capital Partners LLC purchased a new position in Taiwan Semiconductor Manufacturing during the 4th quarter valued at $27,000. Stephens Consulting LLC increased its position in Taiwan Semiconductor Manufacturing by 82.0% during the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 41 shares during the period. Evolution Wealth Management Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC raised its holdings in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 36 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.