Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 4.6% Following Better-Than-Expected Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price traded up 4.6% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $351.33 and last traded at $342.0010. 42,026,551 shares were traded during mid-day trading, an increase of 159% from the average session volume of 16,247,210 shares. The stock had previously closed at $327.11.

The semiconductor company reported $14.32 EPS for the quarter. The firm had revenue of $32.50 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. This represents a $3.87 dividend on an annualized basis and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 31.28%.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Blowout Q4 results — TSMC reported record quarterly profit and revenue that beat estimates, highlighting strong AI-chip demand and margin expansion. TSMC Blowout Q4 Starts A Chain Reaction — CoreWeave, Nebius Lead The FOMO Flood
• Positive Sentiment: Higher capex guidance — Management raised 2026 capital spending to about $52–56 billion to scale advanced-node capacity, signaling conviction in multi-year AI demand and supporting long-term revenue growth. Taiwan Semiconductor’s Q4 Earnings Should Ignite Rally Continuation
• Positive Sentiment: Strong guidance and beat on key metrics — Q4 revenue/profits beat consensus and the firm provided above-consensus near-term revenue guidance, reinforcing the view that AI server demand will lift 2026 top-line momentum. Chip stocks pop after TSMC’s earnings beat boosts confidence in industrywide demand
• Positive Sentiment: Unusual bullish options flow — Large, above-average call buying (hundreds of thousands of contracts) indicates speculative and institutional conviction in further upside. (Intraday options volume entry)
• Positive Sentiment: Policy and investment tailwind — A reported U.S.–Taiwan semiconductor deal that channels up to $500 billion of investment into expanding chip capacity in the U.S. supports long-term capacity expansion and geopolitical diversification of fabs. Taiwan chip deal is worth a total of $500 billion, US Commerce Secretary Lutnick says
• Positive Sentiment: Analyst bullishness — Firms raised price targets and reiterated buys after the beat (e.g., Needham hike), supporting momentum and attracting more buyers. TSM-TSMC price target raised by Needham
• Neutral Sentiment: Sector ripple effects — TSMC’s beat lifted chip-equipment and supplier stocks (e.g., ASML hit record levels), which can amplify flows into semiconductors but don’t change TSMC’s fundamentals directly. ASML tops $500 billion market cap as TSMC results ignite semis rally
• Negative Sentiment: Capacity constraints and customer allocations — Commentary that TSMC is reaching physical capacity limits for some nodes (and selectively prioritizing customers) could limit near-term share gains for some clients and create supply tensions that cap upside if ramping fabs lags demand. TSMC Says ‘No More’ To Nvidia: Why That Is Intel’s Golden Ticket

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Susquehanna boosted their target price on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a “positive” rating in a report on Friday, October 10th. Sanford C. Bernstein reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 2nd. UBS Group set a $330.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Itau BBA Securities started coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, October 7th. They issued an “outperform” rating for the company. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Eight analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $365.00.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 20.9% in the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after acquiring an additional 1,892 shares during the last quarter. Gradient Investments LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 32.2% in the 2nd quarter. Gradient Investments LLC now owns 3,247 shares of the semiconductor company’s stock worth $735,000 after acquiring an additional 790 shares during the period. Balefire LLC bought a new stake in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at about $457,000. Post Resch Tallon Group Inc. acquired a new position in Taiwan Semiconductor Manufacturing during the 2nd quarter valued at about $214,000. Finally, Keystone Wealth Services LLC grew its position in Taiwan Semiconductor Manufacturing by 16.6% in the 2nd quarter. Keystone Wealth Services LLC now owns 2,109 shares of the semiconductor company’s stock worth $478,000 after purchasing an additional 301 shares during the last quarter. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Trading Up 4.6%

The firm’s 50-day simple moving average is $297.51 and its 200 day simple moving average is $272.29. The stock has a market cap of $1.77 trillion, a P/E ratio of 35.08, a PEG ratio of 0.79 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.

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.