Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.5% Higher – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price traded up 2.5% on Monday . The stock traded as high as $333.55 and last traded at $331.8620. 12,634,922 shares were traded during trading, a decline of 11% from the average session volume of 14,156,485 shares. The stock had previously closed at $323.63.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Analysts and outlets expect a record Q4 driven by AI infrastructure demand; several previews say Q4 profit/revenue should be materially higher, reinforcing upside to near-term results. TSMC Q4 profit poised to soar 27% as AI demand drives growth
• Positive Sentiment: Industry commentators and note-writers call TSMC a primary beneficiary of the AI cycle (pricing power, sold-out advanced packaging and multi-quarter revenue acceleration), supporting continued margin expansion and multiple expansion potential. Taiwan Semiconductor: Another Blowout Earnings Look Inevitable
• Positive Sentiment: Reports say the U.S. and Taiwan discussions include tariff-relief elements and TSMC is planning U.S. capacity expansion — a policy/backdrop that reduces geopolitical risk for U.S. customers and could win new orders. Market reaction to trade-deal headlines lifted the stock. TSMC Plans U.S. Expansion in Proposed Taiwan Tariff-Relief Deal
• Neutral Sentiment: Multiple market roundups and analyst previews (earnings calendars and “how to play” pieces) are flagging TSMC as a top earnings event this week — increases visibility and trading volume but already priced-in in part. Top Stocks With Earnings This Week: TSMC, Big Banks And More
• Neutral Sentiment: Valuation/idea pieces list TSMC as an undervalued AI play vs. peers — helpful context for longer-term buyers but less immediately catalytic than concrete results or policy. Top Undervalued AI Stocks: Micron, TSMC, Qualcomm Dominate
• Negative Sentiment: Some analysts warn rising costs from overseas expansions and heavy capex (to add U.S. capacity) could pressure near-term profitability even as revenue rises — a risk to watch in the upcoming report and guidance. Taiwan Semiconductor to Report Q4 Earnings: How to Play the Stock?

Analyst Upgrades and Downgrades

Several research analysts have commented on TSM shares. UBS Group set a $330.00 price objective on Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Sanford C. Bernstein reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. Itau BBA Securities initiated coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They set an “outperform” rating on the stock. Finally, Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research report on Friday, October 17th. Eight equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $355.00.

Taiwan Semiconductor Manufacturing Stock Up 2.5%

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47. The stock has a market capitalization of $1.72 trillion, a price-to-earnings ratio of 34.04, a PEG ratio of 0.92 and a beta of 1.29. The firm’s fifty day moving average is $296.10 and its 200-day moving average is $271.18.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%. On average, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be paid a dividend of $0.9678 per share. The ex-dividend date is Tuesday, March 17th. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 25.74%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently made changes to their positions in the company. Heartwood Wealth Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing during the third quarter valued at $32,000. Cedar Wealth Management LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 91.4% during the 3rd quarter. Cedar Wealth Management LLC now owns 134 shares of the semiconductor company’s stock valued at $37,000 after buying an additional 64 shares during the last quarter. Fairman Group LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 171.2% during the 3rd quarter. Fairman Group LLC now owns 141 shares of the semiconductor company’s stock valued at $39,000 after buying an additional 89 shares during the last quarter. Resources Management Corp CT ADV acquired a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth about $32,000. Finally, Noble Wealth Management PBC lifted its holdings in Taiwan Semiconductor Manufacturing by 136.1% in the fourth quarter. Noble Wealth Management PBC now owns 144 shares of the semiconductor company’s stock worth $44,000 after acquiring an additional 83 shares during the last quarter. 16.51% of the stock is currently owned by 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.