Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 3% – Time to Sell?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded down 3% during mid-day trading on Friday . The company traded as low as $400.80 and last traded at $403.1830. 11,444,511 shares changed hands during trading, a decline of 18% from the average daily volume of 14,009,795 shares. The stock had previously closed at $415.58.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC reported record AI-driven earnings and lifted its 2026 revenue growth outlook above 40%, underscoring that demand for its advanced chips remains exceptionally strong.
• Positive Sentiment: The company announced another $100 billion investment in U.S. chipmaking, reinforcing its long-term growth strategy and deepening its role in the AI supply chain. TSMC Just Flexed Its Cash and Raised the Stakes in America After Record AI-Driven Earnings
• Positive Sentiment: Reports that TSMC plans 2027 price increases of 5% to 10% suggest strong pricing power and the ability to defend margins despite rising capital spending. TSMC’s Price Hikes Could Show Which AI Chip Stocks Have Real Pricing Power
• Neutral Sentiment: Analyst commentary continues to frame TSMC as a central beneficiary of the AI buildout, but this is largely a restatement of the bullish thesis rather than a new catalyst. The Overlooked Infrastructure Play Quietly Winning the AI Boom
• Negative Sentiment: Some articles note that TSMC has still pulled back recently because investors worry about AI spending intensity, heavy capex, and broader semiconductor volatility, even though the business fundamentals remain strong. Intel’s Strong Earnings Couldn’t Save the Stock From an AI Spending Panic

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on TSM. Susquehanna lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 18th. DA Davidson raised their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Needham & Company LLC boosted their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Finally, Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $490.00.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a fifty day moving average price of $427.71 and a two-hundred day moving average price of $381.57. The firm has a market cap of $2.09 trillion, a price-to-earnings ratio of 29.09, a price-to-earnings-growth ratio of 0.97 and a beta of 1.36. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%.The firm had revenue of $39.89 billion for the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.32%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the company’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 acquisition, the vice president directly owned 5,000 shares of the company’s stock, valued at $395,950. This trade represents a 25.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, VP Bor-Zen Tien bought 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 6,857 shares of company stock valued at $512,334 in the last quarter. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Fisher Asset Management LLC raised its position in shares of 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 worth $5,514,662,000 after purchasing an additional 313,773 shares during the period. Van ECK Associates Corp boosted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the period. Bank of America Corp DE boosted its position in shares of 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 purchasing an additional 966,926 shares during the period. Jennison Associates LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 6.4% in 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 during the period. Finally, Coatue Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 6.9% in the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock worth $2,622,426,000 after purchasing an additional 556,988 shares in the last quarter. Institutional investors and hedge funds 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.