Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 1.6% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price fell 1.6% during mid-day trading on Thursday . The company traded as low as $432.44 and last traded at $433.6150. 14,699,784 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 13,868,243 shares. The stock had previously closed at $440.83.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Aletheia Capital raised its price target on TSM and kept a Buy rating, citing expectations for continued advanced-node growth tied to the AI chip cycle. Aletheia Capital Raises Price Target on Taiwan Semiconductor (TSM) on Advanced Node Growth Expectations
• Positive Sentiment: Analysts and fund commentary continued to highlight TSM as a core AI infrastructure winner, pointing to strong earnings, pricing power, and its key role in the AI capex cycle. Strong Earnings Demonstrate Taiwan Semiconductor Manufacturing Company Limited’s (TSM) Key Role in The AI-Capex Cycle
• Positive Sentiment: TSM was also featured in bullish articles calling it a leading long-term AI chip and infrastructure investment, reflecting continued investor enthusiasm for the stock’s fundamentals. Here’s Why Taiwan Semiconductor (TSM) May Be the Smartest AI Infrastructure Buy Right Now
• Neutral Sentiment: TSMC disclosed routine updates including heavy capex plans, a bond issuance, and a share capital reduction for May 2026, which appear more operational than market-moving on their own. TSMC Details Heavy Capex, Bond Issuance and Share Capital Reduction for May 2026
• Neutral Sentiment: Broader market commentary suggests some investors are questioning the crowded “all-in on AI” trade, which may be creating temporary pressure on large AI names like TSM despite solid fundamentals. A VC Says the ‘All Your Eggs in the AI Basket’ Trade Is Finally Cracking — Here’s Where the Money Goes Next
• Negative Sentiment: Articles comparing Intel and TSM discussed how big tech is diversifying away from Taiwan, which may have raised investor concerns about future supply-chain concentration risk for TSM. Big Tech’s Quiet Diversification Out of Taiwan Is the Ultimate Catalyst for Intel’s Turnaround

Analysts Set New Price Targets

TSM has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Sunday, March 22nd. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Needham & Company LLC upped their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Finally, DA Davidson reiterated a “buy” rating and issued a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The stock has a market cap of $2.24 trillion, a price-to-earnings ratio of 35.98, a PEG ratio of 1.10 and a beta of 1.38. The firm’s 50-day moving average price is $413.95 and its two-hundred day moving average price is $363.39. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49.

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

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be issued a $1.1136 dividend. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 25.12%.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Bor-Zen Tien bought 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction 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 transaction, the vice president directly owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders acquired 4,496 shares of company stock worth $327,927. Company insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Fisher Asset Management LLC raised its position in Taiwan Semiconductor Manufacturing by 1.8% in 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 purchasing an additional 313,773 shares during the period. Van ECK Associates Corp grew its stake in shares of Taiwan Semiconductor Manufacturing by 11.1% in the fourth 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 grew its stake in shares of Taiwan Semiconductor Manufacturing by 6.5% in the fourth 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 buying an additional 966,926 shares in the last quarter. Jennison Associates LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 6.4% in the 4th quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after buying an additional 802,757 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in Taiwan Semiconductor Manufacturing by 2.2% during the 3rd quarter. Alliancebernstein L.P. now owns 10,687,037 shares of the semiconductor company’s stock worth $2,984,783,000 after acquiring an additional 229,237 shares in the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.