Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Up 5.5% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was up 5.5% on Friday . The stock traded as high as $349.72 and last traded at $349.01. Approximately 16,941,837 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 15,146,568 shares. The stock had previously closed at $330.73.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC plans mass production of 3nm chips in Japan with roughly a $17B investment, signaling a big boost to advanced-node capacity and geographic diversification. This report is from Reuters. Read More.
• Positive Sentiment: Coverage notes Tokyo is ramping up subsidies and support as TSMC expands 3nm production in Japan — a combination that reduces capex risk and improves project economics. (Benzinga) Read More.
• Positive Sentiment: Multiple outlets frame the ~$17B Japan upgrade as a strategic game-changer that addresses surging AI chip demand and mitigates geopolitical concentration risk. (Blockonomi) Read More.
• Positive Sentiment: Deep-dive reporting highlights TSMC’s decision to produce advanced 3nm chips at Kumamoto to meet accelerating AI demand — underlining why capacity expansion is urgent. (Barron’s) Read More.
• Positive Sentiment: Financial news outlets reiterate the expansion and tie it to strong recent results (Q4 revenue growth), reinforcing expectations for sustained demand-driven revenue. (24/7 Wall St.) Read More.
• Positive Sentiment: Market-data coverage flags TSMC’s upgraded Japan plans and the shift toward mass-producing advanced 3nm chips — a near-term catalyst for investor sentiment. (TipRanks) Read More.
• Positive Sentiment: Zacks Research upgraded TSMC from Hold to Strong Buy, which can attract flows and supports the bullish momentum. Read More.
• Neutral Sentiment: A Zacks piece notes the consensus price target implies ~25% upside but cautions that price-target signals are imperfect; earnings-estimate revision trends are a more reliable short-term indicator. Read More.
• Neutral Sentiment: Another Zacks piece examines whether Wall Street recommendations matter materially for investors, a reminder to weigh analyst upgrades alongside fundamentals and execution risk. Read More.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 9th. UBS Group set a $330.00 target price on Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, December 29th. Finally, Argus raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Thursday, January 15th. Three analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $381.67.

Taiwan Semiconductor Manufacturing Stock Up 5.5%

The stock has a market capitalization of $1.81 trillion, a price-to-earnings ratio of 32.77, a price-to-earnings-growth ratio of 0.98 and a beta of 1.31. The firm has a 50 day simple moving average of $314.52 and a 200-day simple moving average of $284.45. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. The business had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. On average, sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be paid a dividend of $0.9678 per share. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. This represents a $3.87 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, March 17th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 23.57%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC raised its position in Taiwan Semiconductor Manufacturing by 20.9% in the 4th quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock valued at $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Ignite Planners LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 4.7% during the second quarter. Ignite Planners LLC now owns 2,610 shares of the semiconductor company’s stock worth $627,000 after purchasing an additional 116 shares during the last quarter. PDS Planning Inc increased its stake in shares of Taiwan Semiconductor Manufacturing by 4.2% in the second quarter. PDS Planning Inc now owns 20,532 shares of the semiconductor company’s stock valued at $4,650,000 after buying an additional 820 shares in the last quarter. Blue Zone Wealth Advisors LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 20.8% in the second quarter. Blue Zone Wealth Advisors LLC now owns 2,420 shares of the semiconductor company’s stock valued at $548,000 after buying an additional 417 shares during the last quarter. Finally, Aberdeen Group plc lifted its position in Taiwan Semiconductor Manufacturing by 13.7% during the 2nd quarter. Aberdeen Group plc now owns 434,914 shares of the semiconductor company’s stock worth $98,926,000 after buying an additional 52,436 shares in the last quarter. 16.51% of the stock is owned by institutional investors and hedge funds.

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.