Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.7% Higher Following Insider Buying Activity

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded up 2.7% during mid-day trading on Tuesday after an insider bought additional shares in the company. The stock traded as high as $420.25 and last traded at $417.2060. Approximately 13,842,436 shares changed hands during trading, a decline of 2% from the average daily volume of 14,131,813 shares. The stock had previously closed at $406.11.

Specifically, VP Bor-Zen Tien purchased 1,000 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was purchased at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the purchase, the vice president owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Bor-Zen Tien acquired 1,000 shares of the company’s stock in a transaction on Tuesday, July 28th. The stock was acquired at an average cost of $67.97 per share, for a total transaction of $67,970.00. Following the completion of the purchase, the vice president directly owned 5,000 shares of the company’s stock, valued at approximately $339,850. This represents a 25.00% increase in their position. The SEC filing for this purchase provides additional information.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on TSM shares. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. TD Cowen upped their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. DA Davidson lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 18th. Finally, Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and an average target price of $496.25.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: A broad semiconductor rally, fueled by renewed AI spending expectations, sent several chip-focused exchange-traded funds sharply higher. As the leading foundry for advanced processors, TSM is benefiting from increased investor interest in companies tied to data centers, AI accelerators and advanced manufacturing. Semiconductor ETFs Surge up to 19% in Huge Rally as the AI Trade Ramps Back Up
• Positive Sentiment: TSMC Vice President Bor-Zen Tien purchased 1,000 shares in an open-market transaction valued at approximately $73,060, increasing his position by 7.66%. While modest relative to the company’s size, the insider buying may be viewed as a signal of management confidence. TSMC Insider Purchase
• Positive Sentiment: Recent coverage highlights record chip demand and identifies TSMC as a potential beneficiary of continued AI infrastructure investment. Analysts and investors continue to view the company’s advanced-node technology and foundry scale as key competitive advantages. Taiwan Semiconductor in Focus as Chip Demand Hits Records
• Neutral Sentiment: A comparison with Intel argues that Intel’s improving execution could make it a more credible alternative for some investors. The article does not directly undermine TSMC’s technology leadership, but it reinforces competitive and valuation considerations for TSM shares. Buying Intel Over TSMC Isn’t as Crazy as It Might Seem
• Negative Sentiment: Reports of widespread losses among Asia-focused hedge funds during July’s technology selloff underscore the sector’s sensitivity to crowded AI trades and changing risk appetite. The current rebound is favorable for TSM, but the episode highlights the potential for continued sharp swings. Asia Hedge Funds Suffer Widespread Losses in July Market Rout

Taiwan Semiconductor Manufacturing Stock Performance

The business has a fifty day moving average price of $427.19 and a 200-day moving average price of $385.17. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $2.16 trillion, a P/E ratio of 30.10, a P/E/G ratio of 0.93 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%.The company had revenue of $39.89 billion for the quarter. On average, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. This represents a $4.45 annualized dividend and a 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 is presently 21.43%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Fisher Asset Management LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after buying an additional 313,773 shares during the period. Van ECK Associates Corp increased its position in Taiwan Semiconductor Manufacturing by 11.1% during the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after buying an additional 1,750,824 shares in the last quarter. Bank of America Corp DE raised its position in shares of Taiwan Semiconductor Manufacturing by 6.5% in the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock valued at $4,832,708,000 after purchasing an additional 966,926 shares during the last quarter. Jennison Associates LLC lifted its stake in shares of Taiwan Semiconductor Manufacturing by 6.4% during the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock worth $4,070,393,000 after buying an additional 802,757 shares during the period. Finally, Coatue Management LLC lifted its position in Taiwan Semiconductor Manufacturing by 6.9% during the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after acquiring an additional 556,988 shares during the period. 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.