Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.4% Higher – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were up 2.4% on Tuesday . The stock traded as high as $444.29 and last traded at $439.0930. Approximately 13,007,937 shares changed hands during trading, a decline of 4% from the average daily volume of 13,486,924 shares. The stock had previously closed at $428.91.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: High-NA EUV adoption validates TSMC’s technology roadmap. TSMC committed to adopting ASML’s next-generation High-NA EUV lithography tools around 2030 for advanced-node production. The technology is expected to improve manufacturing productivity and support increasingly sophisticated AI chips. TSMC, Samsung commit to ASML’s newest chipmaking tools as AI drives demand
• Positive Sentiment: TSMC and ASML are pursuing larger photomasks. Their initiative aims to establish a 12-inch photomask pilot line by 2031 and enable production readiness for advanced lithography by 2033. The effort could increase scanner throughput and reduce long-term chipmaking costs. ASML and TSMC Announce Initiative to Pioneer Industry Transition to Large-Format Photomasks for High NA EUV
• Positive Sentiment: AI-related demand continues to support earnings expectations. Recent coverage highlights TSMC’s roughly 73% foundry market share, investments in N2 and N3 process technology and advanced packaging, and management’s raised outlook for more than 40% dollar-revenue growth in 2026. Taiwan Semiconductor Retains 73% Foundry Share
• Positive Sentiment: Momentum and analyst attention are reinforcing the rally. TSMC was identified as an IBD Stock of the Day after moving above an early buy point, while other commentary presents the company as a leading AI investment and projects continued long-term market-value growth. TSMC, IBD Stock Of The Day, Rises Above Early Buy Point
• Neutral Sentiment: TSMC’s approximately $265 billion U.S. expansion is strengthening its strategic and political importance, but the added overseas manufacturing footprint could pressure margins and increase execution risk. TSMC’s $265 Billion U.S. Bet Is Becoming Part of Taiwan’s Chip Diplomacy

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Barclays lifted their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 26th. TD Cowen upped their target price on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Susquehanna raised their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Finally, Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The firm has a market capitalization of $2.28 trillion, a PE ratio of 31.68, a P/E/G ratio of 0.98 and a beta of 1.39. The company has a 50-day moving average price of $420.11 and a 200-day moving average price of $398.63.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The firm had revenue of $39.89 billion during the quarter. Sell-side analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.52 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. The ex-dividend date 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 25.25%.

Insider Activity

In other news, VP Shyue-Shyh Lin bought 2,000 shares of the stock in a transaction on Sunday, July 19th. The stock was purchased at an average cost of $71.71 per share, with a total value of $143,420.00. Following the purchase, the vice president owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. The trade was a 7.61% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, SVP Shu-Hua Fang purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Thursday, July 2nd. The shares were acquired at an average cost of $77.09 per share, for a total transaction of $154,180.00. Following the purchase, the senior vice president owned 8,206 shares in the company, valued at approximately $632,600.54. This trade represents a 32.23% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders acquired 19,512 shares of company stock worth $1,450,270. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several large investors have recently added to or reduced their stakes in the business. Tiger Global Management LLC grew its holdings in Taiwan Semiconductor Manufacturing by 49.4% in the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after buying an additional 1,839,600 shares during the period. Van ECK Associates Corp lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 11.1% during the 4th 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 during the period. Life Cycle Investment Partners Ltd purchased a new position in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. boosted its position in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after acquiring an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP purchased a new stake in Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $360,443,000. 16.51% of the stock is currently owned by hedge funds and other institutional investors.

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.