Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 5.3% Higher – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price rose 5.3% during mid-day trading on Monday . The company traded as high as $456.10 and last traded at $455.2620. Approximately 14,811,869 shares traded hands during mid-day trading, an increase of 7% from the average daily volume of 13,892,756 shares. The stock had previously closed at $432.35.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC was highlighted as a key winner from the AI capex boom, with multiple articles arguing the stock still has room to run because of rising demand for advanced chips and manufacturing leadership. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: Analysts continue to sound constructive on TSMC, including a recent earnings estimate increase and a consensus “Buy” rating, which supports the longer-term bull case. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Receives Consensus Rating of “Buy” from Analysts
• Positive Sentiment: President Trump said TSMC is doubling the size of its chipmaking facilities in Arizona, reinforcing the company’s U.S. expansion story and potential strategic importance. Trump says Taiwan is doubling the size of chipmaking plant in Arizona
• Positive Sentiment: TSMC also hit a 52-week high, reflecting strong recent momentum and investor confidence in its AI-linked growth outlook. Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Hit a 52 Week High, Can the Run Continue?
• Neutral Sentiment: A TSMC vice president bought 1,000 shares, a modest insider confidence signal, but not a major near-term catalyst. Taiwan Semiconductor Manufacturing (NYSE:TSM) VP Acquires $76,640.00 in Stock
• Negative Sentiment: TSMC shares were hit by a broader semiconductor selloff after Bank of America flagged “bubble risk,” suggesting some investors are taking profits after the stock’s strong AI-driven rally. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Wall Street Analysts Forecast Growth

Several research firms recently commented on TSM. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, June 17th. Barclays increased their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a report on Wednesday, April 22nd. Bank of America raised their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus price target of $449.38.

Taiwan Semiconductor Manufacturing Trading Down 6.9%

The firm has a fifty day simple moving average of $417.94 and a 200-day simple moving average of $366.08. The firm has a market cap of $2.31 trillion, a P/E ratio of 37.20, a price-to-earnings-growth ratio of 1.15 and a beta of 1.38. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The firm had revenue of $30.65 billion during the quarter. On average, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm 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 dividend of $1.1136 per share. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 25.12%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was bought at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the transaction, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. The trade was a 25.00% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Bor-Zen Tien bought 2,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average price of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares in the company, valued at $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have acquired 5,496 shares of company stock worth $404,567. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Brighton Jones LLC grew its position in Taiwan Semiconductor Manufacturing by 20.9% in the 4th 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 in the last quarter. Gamco Investors INC. ET AL bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $701,000. Bank of Nova Scotia increased its position in shares of Taiwan Semiconductor Manufacturing by 12.8% during the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock valued at $3,556,000 after purchasing an additional 1,784 shares during the last quarter. FWL Investment Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 26.5% during the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock valued at $57,000 after purchasing an additional 53 shares during the last quarter. Finally, Main Street Financial Solutions LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter worth $270,000. 16.51% of the stock is owned by 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.