Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.5% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price rose 1.5% during trading on Thursday . The stock traded as high as $411.46 and last traded at $407.6760. Approximately 8,830,343 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 13,964,848 shares. The stock had previously closed at $401.62.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: AMD said it is ramping production of its next-generation EPYC “Venice” processors on TSMC’s 2nm process, highlighting that TSMC’s most advanced manufacturing node is already winning major AI/HPC customers. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD’s CEO also said the company is asking partners to ramp production due to strong AI demand, which suggests continued strength for TSMC as a critical manufacturing partner. AMD asking partners to ramp up production, CEO says
• Positive Sentiment: TSMC raised its 2030 global semiconductor market forecast to more than $1.5 trillion, signaling a bigger long-term demand runway for chip production. Taiwan Semiconductor Manufacturing Company Ltd. Raises 2030 Global Semiconductor Market Forecast to Over USD1.5 Trillion
• Positive Sentiment: Nvidia’s strong AI results and upbeat outlook helped lift sentiment across Asian chipmakers, reinforcing investor confidence in TSMC’s AI supply-chain role. Nvidia’s AI Outlook Sends Asian Chipmakers Up 5.5%
• Neutral Sentiment: Taiwan’s central bank is considering limits on how often foreign investors can switch currencies for TSMC dividend payments, a policy issue that could affect some shareholders but is unlikely to change the business outlook directly. Taiwan may limit currency switching for TSMC dollar dividends to once a year, sources say
• Neutral Sentiment: Tokyo Electron’s Taiwan unit said it will not appeal a trade-secrets ruling tied to TSMC, which lowers legal uncertainty but appears limited in direct financial impact. Tokyo Electron’s Taiwan unit says it will not appeal ruling in TSMC trade secrets case
• Negative Sentiment: Articles focused on slowing TSM growth and a potential bottleneck to Nvidia’s expansion underscore investor concern that TSMC’s infrastructure capacity may eventually constrain AI-chip demand growth. IDVO’s $445 Million Income Play Faces a Critical Test When TSM Growth Slows

Analysts Set New Price Targets

TSM has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Wedbush restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Needham & Company LLC raised their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Finally, Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research report on Wednesday, April 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.32 and a current ratio of 2.49. The stock has a market cap of $2.09 trillion, a PE ratio of 33.63, a PEG ratio of 1.19 and a beta of 1.39. The company’s 50-day moving average price is $370.58 and its two-hundred day moving average price is $338.26.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. The company had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 24.96%.

Insider Activity

In other news, VP Bor-Zen Tien acquired 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the transaction, the vice president owned 11,051 shares of the company’s stock, valued at $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the transaction, the vice president directly owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have bought a total of 3,346 shares of company stock worth $218,005 over the last quarter. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Brighton Jones LLC lifted its stake in Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at about $701,000. Bank of Nova Scotia increased its holdings in shares of Taiwan Semiconductor Manufacturing by 12.8% in the second quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after buying an additional 1,784 shares during the period. FWL Investment Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 26.5% in the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after buying an additional 53 shares during the period. Finally, Main Street Financial Solutions LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $270,000. 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.