Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.3% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 1.3% during trading on Wednesday . The company traded as low as $324.82 and last traded at $327.0110. 11,057,239 shares were traded during mid-day trading, a decline of 17% from the average session volume of 13,387,309 shares. The stock had previously closed at $331.21.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Reuters says TSMC is likely to report a ~28% jump in Q4 net profit to a record high, driven by sustained demand for advanced AI chips — a near‑term earnings beat that supports revenue and margin momentum. TSMC likely to post fourth-quarter profit leap driven by AI boom
• Positive Sentiment: JPMorgan and other Wall Street forecasters have lifted expectations/price targets ahead of earnings, signaling strong analyst conviction in TSMC’s AI‑led growth runway. TSMC (TSM) Gets Price Target Hike as JPMorgan Sees Strong AI-Led Growth
• Positive Sentiment: Reports say TSMC plans a major U.S. buildout (potentially a dozen Arizona facilities, large multibillion‑dollar U.S. investment) as part of trade/tariff discussions — a long‑term capacity and political‑risk mitigation boost. TSMC to Expand $165 Billion U.S. Investment: Report. It’s Part of a Trump Tariffs Deal.
• Positive Sentiment: Institutional interest: Mar Vista added TSM to a U.S. quality strategy fund — another signal of buy‑side conviction ahead of earnings. Factors Led Mar Vista’s U.S. Quality Strategy’s New Addition: Taiwan Semiconductor (TSM)
• Neutral Sentiment: Analysts are revising price expectations and positioning ahead of Q4 — volatility likely around the print as estimates converge and guidance is parsed. Top Wall Street Forecasters Revamp Taiwan Semiconductor Manufacturing Price Expectations Ahead Of Q4 Earnings
• Neutral Sentiment: Previews (Zacks, Seeking Alpha, BarrChart) expect AI demand to lift revenues but note rising costs could pressure margins — guidance will be key for direction. AI-Driven Demand for Advanced Chips Likely to Boost TSM’s Q4 Revenues
• Negative Sentiment: Benzinga flags a key constraint: TSMC’s capacity is near full, forcing it to turn away new NVIDIA orders — a supply‑side limit that could cap upside if demand outstrips buildout timing. TSMC Says ‘No More’ To Nvidia: Why That Is Intel’s Golden Ticket

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the stock. The Goldman Sachs Group restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $330.00 to $355.00 and gave the company an “overweight” rating in a research report on Friday, October 17th. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Weiss Ratings reiterated a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. Eight investment analysts have rated the stock with a Buy rating, According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and a consensus target price of $355.00.

Taiwan Semiconductor Manufacturing Stock Down 1.3%

The company has a market capitalization of $1.69 trillion, a PE ratio of 33.54, a P/E/G ratio of 0.93 and a beta of 1.29. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. The firm has a 50 day simple moving average of $296.84 and a two-hundred day simple moving average of $271.90.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.34% and a net margin of 43.72%.The firm had revenue of $32.50 billion during the quarter. Research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Tuesday, March 17th will be issued a $0.9678 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 25.74%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Jennison Associates LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 26.7% in the 2nd quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company’s stock valued at $2,728,478,000 after buying an additional 2,537,760 shares during the period. Brown Advisory Inc. grew its holdings in Taiwan Semiconductor Manufacturing by 43.2% during the second quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company’s stock worth $1,506,389,000 after acquiring an additional 2,006,745 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Taiwan Semiconductor Manufacturing by 109.5% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company’s stock worth $798,640,000 after acquiring an additional 1,842,951 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its position in Taiwan Semiconductor Manufacturing by 268.2% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock worth $566,152,000 after acquiring an additional 1,820,852 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in Taiwan Semiconductor Manufacturing by 18.0% in the second quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company’s stock valued at $2,368,587,000 after acquiring an additional 1,593,786 shares during the period. 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.