Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 4% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares fell 4% on Tuesday . The stock traded as low as $410.77 and last traded at $413.8680. 13,986,404 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 13,859,371 shares. The stock had previously closed at $430.97.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Samsung reportedly plans to raise prices on some advanced foundry services by as much as 15%, reflecting strong demand for AI chips and tight manufacturing capacity. The pricing environment could support higher revenue and margins for TSMC, the world’s largest contract chipmaker. After TSMC, Samsung Is Also Reportedly Planning To Hike Chip Prices
• Positive Sentiment: Analysts and investors continue to view TSMC favorably. Brokerages maintain an average “Buy” recommendation, while Bank of America sees momentum building for the company’s U.S. fab expansion. Some hedge funds also shifted capital toward TSMC while reducing exposure to Broadcom. Taiwan Semiconductor Manufacturing Given Average Recommendation of Buy BofA Sends Bullish Message For Taiwan Semiconductor Stock Fans
• Neutral Sentiment: Regulators took initial steps toward allowing AI-compute futures tied to GPU prices from companies including Nvidia, TSMC and Broadcom. The development could create new investment and hedging tools around AI infrastructure, but its direct financial impact on TSMC remains uncertain. U.S. Markets Prepare For AI Compute Derivatives
• Neutral Sentiment: Coverage comparing TSMC with ASML highlights TSMC’s scale and dominant foundry position, supporting its long-term strategic importance in the semiconductor supply chain. However, the comparison is primarily an investment opinion rather than a new company announcement. Taiwan Semiconductor vs. ASML
• Negative Sentiment: TSM shares were reported at roughly 30.9% above GF Value, suggesting valuation concerns may be limiting further gains despite tightening chip capacity and favorable industry pricing. The stock’s elevated earnings multiple leaves it vulnerable to profit-taking or weaker-than-expected AI demand. TSMC Trades 30.87% Above GF Value as Chip Capacity Tightens

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Weiss Ratings lowered Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 12th. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Sanford C. Bernstein increased their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Finally, Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus price target of $524.25.

Taiwan Semiconductor Manufacturing Price Performance

The company has a market cap of $2.14 trillion, a P/E ratio of 29.77, a P/E/G ratio of 0.95 and a beta of 1.38. The company’s 50-day moving average price is $425.83 and its two-hundred day moving average price is $392.45. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. As a group, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 21.43%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In related news, VP Shyue-Shyh Lin bought 2,000 shares of the stock in a transaction dated Sunday, July 19th. The stock was bought at an average cost of $71.71 per share, with a total value of $143,420.00. Following the completion of the acquisition, the vice president owned 28,269 shares of the company’s stock, valued at $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Lipen Yuan purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the acquisition, the vice president owned 5,000 shares in the company, valued at approximately $395,950. The trade was a 25.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have acquired 16,312 shares of company stock worth $1,207,238. 1.11% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of TSM. Tiger Global Management LLC grew its holdings in Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares in the last quarter. 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 worth $5,307,428,000 after purchasing an additional 1,750,824 shares in the last quarter. Life Cycle Investment Partners Ltd acquired a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. raised its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after purchasing an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP acquired a new stake in Taiwan Semiconductor Manufacturing in the third quarter worth about $360,443,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

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.