Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.2% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 1.2% during mid-day trading on Wednesday . The stock traded as high as $348.68 and last traded at $341.8380. Approximately 14,842,664 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 14,207,039 shares. The stock had previously closed at $337.95.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC will start equipment installation and plans mass production of 3‑nanometre wafers at its second Japan factory in 2028, supporting capacity diversification and nearershore supply for AI chips. TSMC plans 3-nanometre chip production launch in Japan in 2028
• Positive Sentiment: Regulatory/official approval and a ~\$5.26B investment for an advanced AI-focused 3nm “mega‑factory” in Japan strengthens TSMC’s geographic diversification and long-term AI supply-chain positioning. Taiwan Semiconductor Wins Approval For Ultra-Efficient AI Chip Mega-Factory In Japan
• Positive Sentiment: Analysts and outlets are highlighting TSMC’s leadership in the AI chip supply chain and in some cases prefer TSMC, Broadcom and Micron over Nvidia for 2026 AI-related growth — signaling continued analyst support for TSMC’s secular story. Three AI Chip Stocks Analysts Love More Than Nvidia (NVDA) Right Now
• Positive Sentiment: TSMC’s 2nm production ramp and sustained AI demand are being cited as drivers that reframe growth and valuation expectations—higher‑margin AI orders could lift long‑term revenue and profitability. TSMC 2nm Ramp And AI Demand Reframe Growth And Valuation Narrative
• Positive Sentiment: Large unusual options activity — an elevated purchase of call options — suggests some traders are positioning bullishly for further upside or event-driven gains. Unusually large options trading activity
• Positive Sentiment: TSMC emphasizes advanced packaging to capture more value per wafer and meet AI customer needs, which could expand addressable market and margins over time. Will TSM’s Advanced Packaging Push Unlock a New Growth Phase?
• Neutral Sentiment: Investors are actively searching TSM on platforms (higher attention can boost short‑term flows but is not inherently directional). Investors Heavily Search Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Here is What You Need to Know
• Neutral Sentiment: Mentions in investor letters and lists of innovative companies (Fast Company, fund commentaries) reinforce brand and strategy but are secondary to capacity and demand news. Taiwan Semiconductor Manufacturing Company Limited (TSM) Gains from Strong Demand…
• Negative Sentiment: Recent volatility: a prior session saw TSMC fall more steeply than the market, underscoring that shares can react sharply to macro headlines or near‑term demand noise. TSMC (TSM) Falls More Steeply Than Broader Market: What Investors Need to Know

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Needham & Company LLC boosted their target price 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. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. Three investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $391.43.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42. The company has a market capitalization of $1.77 trillion, a PE ratio of 32.10, a P/E/G ratio of 0.87 and a beta of 1.29. The stock has a 50-day simple moving average of $348.54 and a 200 day simple moving average of $314.32.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%. Equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.9503 per share. This represents a $3.80 annualized dividend and a yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 28.36%.

Insider Transactions at Taiwan Semiconductor Manufacturing

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Mitchell Sinkler & Starr PA raised its holdings in shares of Taiwan Semiconductor Manufacturing by 1.9% in the fourth quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock worth $450,000 after acquiring an additional 28 shares during the last quarter. Wayfinding Financial LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 2.5% during the fourth quarter. Wayfinding Financial LLC now owns 1,152 shares of the semiconductor company’s stock valued at $350,000 after acquiring an additional 28 shares during the last quarter. Thompson Siegel & Walmsley LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 3.6% during the fourth quarter. Thompson Siegel & Walmsley LLC now owns 868 shares of the semiconductor company’s stock valued at $264,000 after acquiring an additional 30 shares during the last quarter. Oak Harvest Investment Services increased its position in Taiwan Semiconductor Manufacturing by 2.9% during the 4th quarter. Oak Harvest Investment Services now owns 1,106 shares of the semiconductor company’s stock worth $336,000 after purchasing an additional 31 shares in the last quarter. Finally, Solstein Capital LLC increased its position in Taiwan Semiconductor Manufacturing by 4.8% during the 4th quarter. Solstein Capital LLC now owns 695 shares of the semiconductor company’s stock worth $211,000 after purchasing an additional 32 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.