Taiwan Semiconductor Manufacturing (NYSE:TSM) Upgraded by DA Davidson to Strong-Buy Rating

DA Davidson upgraded shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) to a strong-buy rating in a research report report published on Friday morning,Zacks.com reports.

TSM has been the topic of several other research reports. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Wedbush reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Barclays lifted their target price on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the company an “overweight” rating in a research note on Friday, January 16th. Finally, UBS Group set a $330.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Sunday, December 7th. Four investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $391.43.

Taiwan Semiconductor Manufacturing Trading Down 0.4%

Shares of TSM stock opened at $366.47 on Friday. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19. The business’s 50 day moving average is $321.78 and its two-hundred day moving average is $288.42. Taiwan Semiconductor Manufacturing has a twelve month low of $134.25 and a twelve month high of $380.00. The company has a market capitalization of $1.90 trillion, a P/E ratio of 34.41, a price-to-earnings-growth ratio of 1.03 and a beta of 1.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. The firm 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%. Equities analysts forecast that Taiwan Semiconductor Manufacturing will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be paid a $0.9503 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 23.57%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors have recently modified their holdings of the stock. Brighton Jones LLC lifted its stake 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 valued at $2,159,000 after buying an additional 1,892 shares during the period. Ignite Planners LLC grew its holdings in Taiwan Semiconductor Manufacturing by 4.7% during the second quarter. Ignite Planners LLC now owns 2,610 shares of the semiconductor company’s stock valued at $627,000 after purchasing an additional 116 shares during the period. Nordea Investment Management AB increased its stake in Taiwan Semiconductor Manufacturing by 16.2% in the second quarter. Nordea Investment Management AB now owns 996,347 shares of the semiconductor company’s stock valued at $224,766,000 after purchasing an additional 138,909 shares in the last quarter. Stratos Wealth Advisors LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 82.2% in the second quarter. Stratos Wealth Advisors LLC now owns 13,565 shares of the semiconductor company’s stock worth $3,072,000 after acquiring an additional 6,119 shares in the last quarter. Finally, Chevy Chase Trust Holdings LLC raised its holdings in Taiwan Semiconductor Manufacturing by 1.0% during the 2nd quarter. Chevy Chase Trust Holdings LLC now owns 6,387 shares of the semiconductor company’s stock worth $1,447,000 after buying an additional 63 shares during the period. 16.51% of the stock is owned by institutional investors.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported strong consolidated net revenue for January 2026 (NT$401.26bn), +19.8% month‑over‑month and +36.8% year‑over‑year; the board also approved a cash dividend — a direct support to the stock’s Fundamentals and yield story. TSMC Reports Strong January Revenue Growth
• Positive Sentiment: Market reaction to the dividend pushed TSM higher in some sessions (reported trading up after the announcement), reflecting investor appetite for cash returns alongside growth. TSM Trading Up After Dividend Announcement
• Positive Sentiment: Analysts and commentary are reframing TSM as an AI‑era play: Seeking Alpha notes Nvidia has become TSM’s largest customer and AI chips now drive growth — implying stronger pricing power and stickier demand versus the handset era. That longer‑term structural story supports earnings visibility. Taiwan Semiconductor: Transition From An iPhone To An AI Era
• Positive Sentiment: Multiple market writeups and stock‑picks lists (e.g., The Motley Fool) continue to include TSM as a core chipmaker exposure for AI/data‑center buildouts, keeping investor interest in the name. 5 Best Artificial Intelligence Stocks to Buy in February
• Neutral Sentiment: Market rotation commentary (Chaikin/MarketBeat) favors AI infrastructure and chip‑chain suppliers (testing, packaging, power)—a positive backdrop for TSM but one that spreads gains across many suppliers rather than guaranteeing further outsized moves for TSM alone. Is AI Really Eating Software? A Wall Street Veteran Says No—Here’s Why
• Negative Sentiment: Some coverage highlights that major cloud providers (Microsoft, Google, Amazon) are signaling caution on near‑term AI capex, which could temper the pace of future orders and create short‑term volatility for chip suppliers. That risk helps explain profit‑taking despite good January sales. These 3 stocks are quietly soaring as Microsoft, Google slump on AI spending

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.