Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 1.5% Higher – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was up 1.5% on Thursday . The stock traded as high as $334.57 and last traded at $330.50. Approximately 14,603,592 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 15,104,278 shares. The stock had previously closed at $325.74.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC plans mass production of 3nm chips in Japan with roughly a $17B investment, signaling a big boost to advanced-node capacity and geographic diversification. This report is from Reuters. Read More.
• Positive Sentiment: Coverage notes Tokyo is ramping up subsidies and support as TSMC expands 3nm production in Japan — a combination that reduces capex risk and improves project economics. (Benzinga) Read More.
• Positive Sentiment: Multiple outlets frame the ~$17B Japan upgrade as a strategic game-changer that addresses surging AI chip demand and mitigates geopolitical concentration risk. (Blockonomi) Read More.
• Positive Sentiment: Deep-dive reporting highlights TSMC’s decision to produce advanced 3nm chips at Kumamoto to meet accelerating AI demand — underlining why capacity expansion is urgent. (Barron’s) Read More.
• Positive Sentiment: Financial news outlets reiterate the expansion and tie it to strong recent results (Q4 revenue growth), reinforcing expectations for sustained demand-driven revenue. (24/7 Wall St.) Read More.
• Positive Sentiment: Market-data coverage flags TSMC’s upgraded Japan plans and the shift toward mass-producing advanced 3nm chips — a near-term catalyst for investor sentiment. (TipRanks) Read More.
• Positive Sentiment: Zacks Research upgraded TSMC from Hold to Strong Buy, which can attract flows and supports the bullish momentum. Read More.
• Neutral Sentiment: A Zacks piece notes the consensus price target implies ~25% upside but cautions that price-target signals are imperfect; earnings-estimate revision trends are a more reliable short-term indicator. Read More.
• Neutral Sentiment: Another Zacks piece examines whether Wall Street recommendations matter materially for investors, a reminder to weigh analyst upgrades alongside fundamentals and execution risk. Read More.

Analyst Ratings Changes

Several brokerages have recently weighed in on TSM. UBS Group set a $330.00 target price on Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a “positive” rating in a research note on Friday, October 10th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, December 29th. Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a “moderate buy” rating in a research note on Friday, January 23rd. Finally, Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and an average target price of $381.67.

Taiwan Semiconductor Manufacturing Stock Performance

The stock’s 50-day moving average is $314.52 and its 200 day moving average is $284.11. The stock has a market cap of $1.81 trillion, a price-to-earnings ratio of 32.77, a P/E/G ratio of 0.93 and a beta of 1.31. 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 issued its earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.18% and a net margin of 45.13%.The business had revenue of $32.50 billion during the quarter. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Tuesday, March 17th will be issued a dividend of $0.9678 per share. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 23.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently added to or reduced their stakes in the business. Childress Capital Advisors LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 145.3% in the 3rd quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock valued at $891,000 after buying an additional 1,891 shares during the last quarter. Vanguard Personalized Indexing Management LLC lifted its stake in Taiwan Semiconductor Manufacturing by 9.4% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock valued at $28,470,000 after purchasing an additional 8,738 shares during the last quarter. Hantz Financial Services Inc. increased its position in Taiwan Semiconductor Manufacturing by 28.6% during the third quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock worth $10,394,000 after buying an additional 8,284 shares during the last quarter. Cherokee Insurance Co bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $1,248,000. Finally, Hollencrest Capital Management raised its stake in Taiwan Semiconductor Manufacturing by 125.3% in the 3rd quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock valued at $1,457,000 after acquiring an additional 2,901 shares during the period. 16.51% of the stock is owned by institutional investors and hedge funds.

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.