Taiwan Semiconductor Manufacturing (NYSE:TSM) Reaches New 1-Year High – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $384.47 and last traded at $383.3440, with a volume of 3182693 shares changing hands. The stock had previously closed at $370.04.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Analyst note: TSMC is targeting a very strong Q1 gross margin (63%–65%) despite expecting a 2%–4% hit from ramping overseas fabs — a signal that AI-driven advanced-node demand is keeping pricing and profitability robust. Can TSM Sustain 60%+ Gross Margin Amid Overseas Fab Expansion?
• Positive Sentiment: Large institutional support: Point72/Steven Cohen disclosed a major new stake (about $870M) in TSMC — this kind of hedge‑fund buying can prop up the stock and signal confidence from big allocators. Billionaire fund manager drops $2.8 billion on Big Tech stocks
• Positive Sentiment: Relative performance: Coverage highlights TSM as one of several AI‑era winners that are currently outpacing peers (including Nvidia) as data‑center AI demand and margin expansion lift revenue and earnings outlooks. 3 AI Stocks Outpacing NVIDIA in 2026 – With More Upside Ahead
• Positive Sentiment: Long‑term structural case: A MarketBeat feature reiterates TSMC’s central role in the nanotech/AI supply chain and notes capacity expansion (including Arizona) as supporting secular demand — a bullish reminder of durable end‑market exposure. The Supply Chain Quietly Powering the AI Boom—And 4 Ways to Play It
• Neutral Sentiment: Analyst sentiment/ratings: Coverage questioning whether Wall Street’s bullish consensus is meaningful for individual investors — analyst upgrades help sentiment but don’t guarantee further upside given other risks. Is It Worth Investing in TSMC (TSM) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Valuation concern: Commentary asks whether TSMC is too expensive after roughly a 95% one‑year gain — high multiples raise the stock’s sensitivity to any slowdown or execution miss. Is It Too Late To Consider Taiwan Semiconductor Manufacturing (NYSE:TSM) After 95% One Year Rally?
• Negative Sentiment: Macro/trade risk: Headlines about a global tariff increase raise the prospect of higher costs and trade friction for global supply chains — a potential headwind for TSMC’s export‑heavy business and capex plans. Dow Jones Futures Fall After Trump Hikes Global Tariff To 15%

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Freedom Capital raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. UBS Group set a $330.00 price target on Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Finally, TD Cowen upped their target price on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the company a “hold” rating in a report on Friday, January 16th. Four investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Trading Up 4.5%

The firm’s 50-day moving average price is $329.67 and its 200 day moving average price is $294.52. The company has a market cap of $2.00 trillion, a price-to-earnings ratio of 36.28, a P/E/G ratio of 1.03 and a beta of 1.31. The company has a current ratio of 2.69, a quick ratio of 2.47 and a debt-to-equity ratio of 0.19.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. The business had revenue of $32.50 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 36.18%. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be issued a dividend of $0.9503 per share. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 28.64%.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently bought and sold shares of TSM. Fisher Asset Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 1.8% in the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after buying an additional 313,773 shares during the period. Van ECK Associates Corp lifted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after acquiring an additional 966,926 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 3.6% in the third quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company’s stock worth $4,401,448,000 after acquiring an additional 541,047 shares during the period. Finally, Jennison Associates LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after purchasing an additional 802,757 shares in the last quarter. Institutional investors own 16.51% of the company’s stock.

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.