Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 6.8% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were up 6.8% during mid-day trading on Tuesday . The stock traded as high as $338.41 and last traded at $337.9040. Approximately 18,326,589 shares changed hands during trading, an increase of 29% from the average daily volume of 14,193,645 shares. The stock had previously closed at $316.50.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: Japan 3nm mega‑factory approved — TSMC secured government approval for a ~$5.26B project to bring its advanced 3nm process to Japan, which diversifies manufacturing footprint, reduces supply‑chain concentration in Taiwan, and reassures major AI/datacenter customers. Article Title
• Positive Sentiment: 2nm ramp and AI demand reshape growth outlook — TSMC has started 2nm production as record AI and datacenter orders (notably from NVIDIA and Apple) lift long‑term revenue/margin expectations and justify higher valuation assumptions for the foundry. Article Title
• Positive Sentiment: Advanced packaging push could unlock new growth — TSMC is expanding advanced packaging capabilities to capture more value from AI and heterogeneous compute designs, which supports higher ASPs and a stickier customer base. Article Title
• Positive Sentiment: Quarterly demand commentary supports momentum — multiple fund letters cite strong Q4/2025 demand and TSMC’s manufacturing leadership as drivers of gains, reinforcing confidence from institutional investors and portfolio managers. Article Title
• Neutral Sentiment: Capacity constraints and pricing — social and industry commentary highlights tight capacity on advanced nodes and reported price increases on 5nm/4nm, which support revenue but also point to near‑term supply bottlenecks and elevated customer inventory risk; insider purchases offer offsetting confidence. Article Title
• Neutral Sentiment: Brand recognition and awards — TSMC’s inclusion in industry innovation lists is positive for reputation but has limited direct near‑term financial impact. Article Title
• Negative Sentiment: Near‑term share weakness and profit‑taking — recent trading included a sharper pullback versus the broader market (reported ~‑3% session), suggesting some short‑term profit-taking or technical selling despite the operational positives. Article Title
• Negative Sentiment: Large institutional position changes — filings show some big fund reductions in TSMC exposure (notably FMR and others trimmed sizable stakes), which can pressure the stock if part of broader rebalancing or tax‑loss selling. Article Title

Analyst Ratings Changes

A number of analysts recently weighed in on TSM shares. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, January 5th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $380.00 to $450.00 and gave the company an “overweight” rating in a report on Friday, January 16th. Finally, DA Davidson raised Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a report on Friday, February 13th. Three analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and a consensus price target of $391.43.

Taiwan Semiconductor Manufacturing Stock Up 6.8%

The firm’s fifty day moving average is $348.33 and its two-hundred day moving average is $313.77. The firm has a market cap of $1.75 trillion, a price-to-earnings ratio of 31.73, a P/E/G ratio of 0.90 and a beta of 1.29. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42.

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 net margin of 45.13% and a return on equity of 34.89%. The firm had revenue of $30.65 billion for the quarter. On average, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS 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 paid a dividend of $0.9503 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 28.36%.

Insider Buying and Selling

In other news, VP Bor-Zen Tien bought 1,000 shares of the business’s stock in a transaction on Sunday, March 22nd. The stock was purchased at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the transaction, the vice president directly owned 9,051 shares of the company’s stock, valued at approximately $506,222.43. This trade represents a 12.42% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.11% of the stock is currently owned by insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently modified their holdings of TSM. Fisher Asset Management LLC boosted its stake in Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after buying an additional 313,773 shares in the last quarter. Van ECK Associates Corp raised its position in Taiwan Semiconductor Manufacturing by 11.1% in 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 lifted its holdings in Taiwan Semiconductor Manufacturing by 6.5% in the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock valued at $4,832,708,000 after acquiring an additional 966,926 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its position in shares of Taiwan Semiconductor Manufacturing by 3.6% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company’s stock valued at $4,401,448,000 after purchasing an additional 541,047 shares in the last quarter. Finally, Jennison Associates LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 6.4% during the 4th 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.