Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price fell 3% during trading on Friday . The company traded as low as $386.02 and last traded at $397.5910. Approximately 20,848,428 shares were traded during trading, an increase of 48% from the average daily volume of 14,079,226 shares. The stock had previously closed at $409.74.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Needham & Company LLC upped their price objective on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research note on Thursday, April 16th. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Susquehanna boosted their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday. TD Cowen increased their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research note on Friday. Finally, Bank of America raised their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and a consensus target price of $490.00.

Taiwan Semiconductor Manufacturing Trading Down 3.0%

The company has a market cap of $2.06 trillion, a P/E ratio of 28.69, a PEG ratio of 0.99 and a beta of 1.36. The business has a fifty day moving average price of $426.79 and a 200-day moving average price of $377.94. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%. On average, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.83 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 21.43%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the purchase, the vice president owned 5,000 shares of the company’s stock, valued at approximately $395,950. The trade was a 25.00% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bor-Zen Tien purchased 2,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the completion of the transaction, the vice president owned 11,051 shares of the company’s stock, valued at $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought 6,857 shares of company stock worth $512,334 in the last 90 days. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of institutional investors have recently bought and sold shares of the business. Fisher Asset Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 1.8% in 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 boosted its stake in shares of 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 valued at $5,307,428,000 after buying an additional 1,750,824 shares during the period. Bank of America Corp DE grew its position in Taiwan Semiconductor Manufacturing by 6.5% during 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 buying an additional 966,926 shares in the last quarter. Jennison Associates LLC increased its stake in 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 worth $4,070,393,000 after acquiring an additional 802,757 shares during the period. Finally, Coatue Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.9% during the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after acquiring an additional 556,988 shares during the period. 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.