Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 4.3% – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price dropped 4.3% on Tuesday . The stock traded as low as $344.14 and last traded at $353.14. Approximately 18,419,748 shares were traded during trading, an increase of 31% from the average daily volume of 14,072,689 shares. The stock had previously closed at $369.11.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC remains the dominant advanced-node foundry and a major holding in semiconductor ETFs, keeping it well positioned for long-term AI-driven capex demand; that structural exposure supports medium- to long-term revenue growth. The $650 Billion AI Surge Is Here—2 Semiconductor ETFs to Play It
• Positive Sentiment: Analyst/press picks continue to list TSMC as a top semiconductor investment because of its ~70% share of advanced-node production and critical role supplying GPUs and custom AI accelerators, underlining secular demand. The Best Stocks to Invest $1,000 in Right Now
• Neutral Sentiment: NVIDIA has reportedly stopped H200 production for China at TSMC and reallocated capacity to its next‑generation “Vera Rubin” chips — a development that reduces near‑term China‑bound volume but frees premium capacity for higher‑margin, next‑gen builds; net impact depends on how much China‑targeted production TSMC loses versus higher‑value work gained. Nvidia refocuses TSMC capacity as export controls stall China sales, FT reports
• Negative Sentiment: Broader risk‑off flows: global funds have been unwinding crowded AI/tech longs and pulled significant money from Taiwan markets this week, which has hit TSMC alongside other chip names. That selling pressure can amplify short‑term downside even if fundamentals remain intact. Global Funds Unwind Hottest AI Trades as Inflation Fears Mount
• Negative Sentiment: Notable institutional exits: high-profile managers have trimmed TSMC exposure (reports show Cathie Wood sold TSMC and Stanley Druckenmiller reduced his stake), which can pressure the stock if momentum investors follow. Cathie Wood Loads Up on Alibaba and Amazon — Sells TSMC and Baidu
• Negative Sentiment: Geopolitical volatility (Iran tensions) and export‑control uncertainty are weighing on market sentiment toward Taiwan equities and the semiconductor supply chain, creating short‑term downside risk for TSMC stock even if operational fundamentals remain strong. TSMC Shares Sink Amid Iran Tensions and Tech Selloff

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research note on Thursday, January 15th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. UBS Group set a $330.00 price target on Taiwan Semiconductor Manufacturing in a research report on Sunday, December 7th. The Goldman Sachs Group reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Finally, DA Davidson raised shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Friday, February 13th. Four investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $391.43.

Taiwan Semiconductor Manufacturing Trading Down 1.5%

The business’s fifty day moving average is $341.23 and its two-hundred day moving average is $300.54. The company has a quick ratio of 2.42, a current ratio of 2.62 and a debt-to-equity ratio of 0.17. The firm has a market cap of $1.82 trillion, a price-to-earnings ratio of 33.05, a price-to-earnings-growth ratio of 0.99 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Thursday, February 26th. The semiconductor company reported $3.11 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%.The company had revenue of $30.65 billion during the quarter. Equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 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, July 9th. Investors of record on Thursday, June 11th will be issued a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 28.36%.

Institutional Trading of Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently modified their holdings of the stock. Childress Capital Advisors LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 145.3% during the third quarter. Childress Capital Advisors LLC now owns 3,192 shares of the semiconductor company’s stock worth $891,000 after purchasing an additional 1,891 shares during the period. Vanguard Personalized Indexing Management LLC grew its position in Taiwan Semiconductor Manufacturing by 9.4% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 101,876 shares of the semiconductor company’s stock worth $28,470,000 after buying an additional 8,738 shares in the last quarter. Hantz Financial Services Inc. increased its stake in Taiwan Semiconductor Manufacturing by 28.6% during the 3rd quarter. Hantz Financial Services Inc. now owns 37,216 shares of the semiconductor company’s stock worth $10,394,000 after acquiring an additional 8,284 shares during the period. Hollencrest Capital Management increased its stake in Taiwan Semiconductor Manufacturing by 125.3% during the 3rd quarter. Hollencrest Capital Management now owns 5,216 shares of the semiconductor company’s stock worth $1,457,000 after acquiring an additional 2,901 shares during the period. Finally, Cherokee Insurance Co acquired a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at $1,248,000. 16.51% of the stock is owned by institutional investors.

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.