Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.8% – What’s Next?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 1.8% during trading on Tuesday . The stock traded as high as $419.77 and last traded at $417.4180. 6,887,574 shares traded hands during trading, a decline of 50% from the average daily volume of 13,731,274 shares. The stock had previously closed at $410.12.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: New 3-nanometer Xiaomi business broadens TSMC’s AI exposure. TSMC is reportedly set to manufacture Xiaomi’s Xring O3 processor using its advanced 3nm process. The deal expands TSMC’s customer base in AI-enabled consumer devices and autonomous-driving products, reinforcing demand for its highest-margin technology. Why Is Taiwan Semiconductor Manufacturing (TSM) Winning More 3nm AI Chip Work?
• Positive Sentiment: A hedge fund’s portfolio shift provides an endorsement. The fund sold Sandisk and purchased TSMC, signaling confidence in TSMC’s more durable growth profile despite volatility across semiconductor stocks. The move may attract attention because TSMC is viewed as a key supplier to the broader AI ecosystem. This Hedge Fund Just Sold Sandisk and Bought Taiwan Semiconductor Manufacturing Stock. Does Wall Street Agree With the Move?
• Positive Sentiment: Analysts continue to identify TSMC as a leading China-related technology investment. A market roundup cites the company’s AI and semiconductor growth drivers, adding to the bullish narrative around TSMC’s role in China’s technology momentum through 2027. Top China Tech Plays Worth Adding to Your Portfolio Right Now
• Positive Sentiment: TSMC’s planned $4.7 billion joint venture with Sony supports long-term growth. The companies plan to develop and manufacture next-generation image sensors, with mass production expected in 2029. The project could diversify TSMC’s applications beyond computing, although financial benefits are several years away. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the Eyes of AI Machines
• Neutral Sentiment: Strong growth has also raised the bar for future results. TSMC’s reported July revenue surge and aggressive capacity expansion reinforce demand, but they leave less room for disappointing guidance or an ordinary outlook from major AI customers such as Nvidia. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. DA Davidson lifted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a report on Friday, July 17th. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. TD Cowen upped their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research report on Friday, July 17th. Finally, Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Three equities research 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’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $524.25.

Taiwan Semiconductor Manufacturing Trading Up 2.7%

The company has a market capitalization of $2.22 trillion, a price-to-earnings ratio of 30.94, a P/E/G ratio of 0.96 and a beta of 1.38. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The business’s 50-day simple moving average is $424.58 and its 200-day simple moving average is $395.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. On average, research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 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, January 7th. Investors of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. The ex-dividend date of this dividend is Thursday, December 10th. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was bought at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the transaction, the vice president owned 14,051 shares of the company’s stock, valued at $1,026,566.06. This represents a 7.66% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Shyue-Shyh Lin purchased 1,000 shares of the stock in a transaction dated Tuesday, July 21st. The stock was bought at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the purchase, the vice president owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 17,662 shares of company stock worth $1,307,491. 1.11% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TSM. Quattro Advisors LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $27,000. Strategic Advocates LLC grew its stake in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares during the period. Ares Financial Consulting LLC acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $29,000. Finally, Basepoint Wealth LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth about $31,000. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

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.