Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.5% – What’s Next?

20 Jan 2026, 19:56 by Doug Wharley · The Cerbat Gem

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s share price was down 4.5% during mid-day trading on Tuesday . The stock traded as low as $326.90 and last traded at $326.9580. Approximately 22,543,395 shares traded hands during mid-day trading, an increase of 32% from the average daily volume of 17,071,098 shares. The stock had previously closed at $342.40.

Taiwan Semiconductor Manufacturing News Summary

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

Positive Sentiment: Blowout Q4 results and strong profitability support the bullish case — record revenue and margins underline TSMC’s dominant position in AI chip manufacturing. Taiwan Semiconductor: AI Value Stock Hiding In Plain Sight
Positive Sentiment: Management is ramping capacity aggressively for AI: TSMC raised planned 2026 capex into the $52–$56 billion range, signaling conviction in sustained AI demand and revenue tailwinds. Short Squeeze Season: Is Super Micro Ready to Fly?
Positive Sentiment: Operational expansion: TSMC is accelerating advanced packaging capacity and fast-tracking additional fabs (including more Arizona land), which reduces supply constraints for customers. TSMC Ramps Up AI Chip Packaging While Nvidia Controls Most 2026 Capacity
Positive Sentiment: Wall Street and large investors are supportive — price-target lifts, bullish analyst commentary and notable buys (e.g., Cathie Wood) add conviction beneath the rally. TSMC Price Target Raised to $370
Neutral Sentiment: TSMC’s results are reverberating across the supply chain (e.g., rallies in server and equipment suppliers), so market moves include second‑order beneficiaries as well as short‑term trading flows. Who Are the Biggest Winners from TSMC’s Blowout Quarterly Report?
Neutral Sentiment: High-profile media and commentators (Jim Cramer, sector pieces) are amplifying the narrative that TSMC is the infrastructure backbone for AI — supporting sentiment but also feeding momentum trading. TSMC’s Call Was Amazing, Says Jim Cramer
Negative Sentiment: CEO C.C. Wei explicitly warned he’s “very nervous” about AI demand and highlighted a potential $56 billion “disaster” to avoid in 2026 — comments that can spook investors about demand visibility and the risk of overbuilding capacity. ‘I’m Also Very Nervous’ TSMC CEO C.C. Wei says on AI Demand
Negative Sentiment: Valuation and execution risk: bullish pricing assumes sustained ~30% revenue CAGR; analysts warn that any hyperscaler slow‑down or execution hiccup (and very high capex) could pressure returns. AI-Driven Demand Fuels TSM’s Growth
Negative Sentiment: Geopolitical and supply‑chain shifts (U.S.–Taiwan moves to relocate parts of the chain) create execution complexity and short‑term uncertainty around costs and timing. What the U.S.-Taiwan deal means for the island’s ‘silicon shield’

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on TSM. Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a “buy” rating in a research note on Thursday, January 15th. Itau BBA Securities assumed coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They issued an “outperform” rating for the company. UBS Group set a $330.00 price objective on Taiwan Semiconductor Manufacturing in a report on Sunday, December 7th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. Finally, Barclays raised their target price on shares of Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the stock an “overweight” rating in a report on Friday. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $381.67.

Get Our Latest Report on Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Price Performance

The stock has a market capitalization of $1.69 trillion, a PE ratio of 30.70, a P/E/G ratio of 0.71 and a beta of 1.29. The company has a quick ratio of 2.47, a current ratio of 2.69 and a debt-to-equity ratio of 0.19. The stock’s 50-day moving average is $300.62 and its 200 day moving average is $274.95.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last released its earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. The company had revenue of $32.50 billion during the quarter. As a group, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share 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. Shareholders of record on Tuesday, March 17th will be paid a $0.9678 dividend. This represents a $3.87 dividend on an annualized basis and a yield of 1.2%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. The ex-dividend date is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 23.57%.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently made changes to their positions in TSM. Childress Capital Advisors LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 145.3% in the third quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock valued at $891,000 after acquiring an additional 1,891 shares during the period. Powers Advisory Group LLC bought a new position in Taiwan Semiconductor Manufacturing during the second quarter worth $240,000. Hudson Edge Investment Partners Inc. raised its stake in Taiwan Semiconductor Manufacturing by 10.1% during the 2nd quarter. Hudson Edge Investment Partners Inc. now owns 236,503 shares of the semiconductor company’s stock valued at $53,566,000 after purchasing an additional 21,648 shares during the last quarter. Cherokee Insurance Co bought a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $1,248,000. Finally, Dupont Capital Management Corp boosted its holdings in Taiwan Semiconductor Manufacturing by 11.6% in the 2nd quarter. Dupont Capital Management Corp now owns 89,303 shares of the semiconductor company’s stock valued at $20,226,000 after purchasing an additional 9,247 shares during the period. 16.51% of the stock is currently owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

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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.