Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 2.8% – Here’s Why
by Jessica Moore · The Cerbat GemTaiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report) shares were up 2.8% during mid-day trading on Thursday . The company traded as high as $430.53 and last traded at $429.3540. 12,295,738 shares changed hands during trading, a decline of 8% from the average session volume of 13,348,618 shares. The stock had previously closed at $417.72.
Trending Headlines about Taiwan Semiconductor Manufacturing
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: 2nm technology is gaining commercial traction. MediaTek selected TSMC’s 2nm process for its Dimensity 9600 Pro, while using TSMC’s 3nm technology for the broader 9600M line. The dual-node launch gives TSMC’s newest process near-term visibility in consumer devices and provides an early validation of its advanced manufacturing leadership. TSMC Gains 1.65% as 2-Nanometer Phones Leave the Lab
- Positive Sentiment: TSMC is ramping 2nm production and increasing investment. Higher spending and capacity expansion are intended to meet expected demand from smartphone and AI-chip customers. The investment could strengthen long-term revenue growth, though it also raises capital requirements before full returns are realized. Why TSM Is Ramping 2nm Production And Spending More
- Positive Sentiment: AI demand remains the central growth catalyst. Analysts and fund managers describe TSMC as a key “pick-and-shovel” supplier for AI accelerators and data-center buildouts. Recent revenue acceleration, strong quarterly results, and infrastructure demand support expectations for continued earnings growth and potential upside. Taiwan Semiconductor Q2 Earnings: AI Infrastructure Demand Sets the Stage for Decade-Long Compounding
- Neutral Sentiment: A new ETF, AIFR, is designed to provide concentrated exposure to semiconductor foundries, potentially increasing visibility for TSMC. However, its narrow mandate, higher fee, and heavy geopolitical concentration could make the fund less attractive to some investors. Portfolio Fit: AIFR
- Negative Sentiment: Valuation and execution risks are becoming more prominent. One analysis suggests TSM may be about 14% overvalued despite the MediaTek win. A costly 2nm ramp, a shortage of skilled workers in U.S. manufacturing operations, and geopolitical concentration in Taiwan could weigh on margins, expansion speed, or the stock’s valuation. TSM Could Be 14% Overvalued As 2nm MediaTek Win Lands
Wall Street Analysts Forecast Growth
TSM has been the subject of a number of analyst reports. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 target price for the company. Sanford C. Bernstein raised their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a report on Tuesday, August 11th. TD Cowen increased their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Barclays boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research note on Friday, July 17th. Three research 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 company. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $523.22.
Get Our Latest Research Report on Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Price Performance
The stock has a market cap of $2.25 trillion, a price-to-earnings ratio of 31.26, a P/E/G ratio of 0.95 and a beta of 1.39. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The stock’s 50 day simple moving average is $417.39 and its two-hundred day simple moving average is $401.87.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The business had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current fiscal year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 25.25%.
Insider Activity
In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were acquired at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the transaction, the vice president directly owned 14,051 shares in the company, valued at approximately $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, VP Shyue-Shyh Lin bought 1,000 shares of the firm’s stock in a transaction dated Tuesday, July 21st. The shares were acquired at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the acquisition, the vice president directly owned 30,269 shares of the company’s stock, valued at approximately $2,243,840.97. The trade was a 3.42% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 20,106 shares of company stock worth $1,496,473 in the last quarter. 1.11% of the stock is owned by company insiders.
Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing
Several hedge funds and other institutional investors have recently made changes to their positions in TSM. Security National Bank of Sioux City Iowa IA bought a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth $49,000. Anchor Investment Management LLC grew its holdings in Taiwan Semiconductor Manufacturing by 4.5% during the second quarter. Anchor Investment Management LLC now owns 11,377 shares of the semiconductor company’s stock valued at $5,433,000 after purchasing an additional 488 shares during the period. Smith Chas P & Associates PA Cpas increased its position in shares of Taiwan Semiconductor Manufacturing by 3.1% in the 2nd quarter. Smith Chas P & Associates PA Cpas now owns 1,010 shares of the semiconductor company’s stock valued at $482,000 after buying an additional 30 shares in the last quarter. Miramontes Capital LLC acquired a new position in Taiwan Semiconductor Manufacturing in the second quarter valued at about $714,000. Finally, Core Capital Management & Research inc. bought a new position in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $177,000. 16.51% of the stock is owned by institutional investors and hedge funds.
About Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.
TSMC manufactures semiconductor wafers using advanced and specialty process technologies.