Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 1.6% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price traded up 1.6% on Tuesday . The stock traded as high as $452.88 and last traded at $452.1470. 11,205,701 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 13,341,036 shares. The stock had previously closed at $445.14.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC reportedly plans to increase wafer-founding prices by approximately 3% to 6% beginning in January 2027. Persistent AI demand and capacity constraints through 2030 could strengthen revenue growth and margins, although the report has not been confirmed by the company. TSMC Set to Raise Chip Prices Up to 6% as AI Boom Keeps Foundry Capacity Tight Through 2030
• Positive Sentiment: TSMC committed approximately $29.4 billion to capacity expansion in August 2026, signaling confidence in sustained demand for advanced chips. The investment may support future growth, particularly in AI and high-performance computing, though it also increases capital spending. TSMC Commits US$29.4 Billion to Capacity Expansion in August 2026
• Positive Sentiment: Customer tape-outs for TSMC’s A14 process are reportedly running ahead of schedule, with volume production targeted for 2028. Early customer adoption supports the company’s advanced-node leadership and longer-term growth outlook. TSMC’s A14 Gains Customer Traction Ahead of 2028 Volume Production
• Positive Sentiment: A new packaging validation hub in Kaohsiung could bring advanced packaging operations closer to suppliers and shorten qualification cycles, improving execution without requiring a disclosed increase in production capacity. TSMC Gains as Packaging Moves Closer to Its Suppliers
• Neutral Sentiment: Analysts remain broadly bullish on TSMC, but the articles note that consensus recommendations can be overly optimistic and should be weighed against the stock’s premium valuation.
• Negative Sentiment: Broader Nasdaq gains have not eliminated warning signs across technology stocks. With TSMC trading at a relatively high earnings multiple and near its 52-week high, profit-taking or a sector pullback could increase volatility.

Analyst Ratings Changes

Several research firms have recently issued reports on TSM. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Bank of America increased their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Susquehanna upped their target price 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. Finally, DA Davidson increased their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $523.22.

Taiwan Semiconductor Manufacturing Stock 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 company has a market cap of $2.32 trillion, a price-to-earnings ratio of 32.22, a price-to-earnings-growth ratio of 1.00 and a beta of 1.39. The stock has a 50-day moving average price of $419.04 and a 200 day moving average price of $404.06.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data 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 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. As a group, analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business 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 $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 25.25%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 1,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were bought at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 21st. The shares were purchased at an average price of $74.13 per share, with a total value of $74,130.00. Following the completion of the acquisition, the vice president owned 30,269 shares of the company’s stock, valued at $2,243,840.97. This represents a 3.42% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 19,106 shares of company stock worth $1,417,283 over the last three months. 1.11% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TSM. Cedar Mountain Advisors LLC raised its holdings in Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 30 shares in the last quarter. Markowski Investments acquired a new position in Taiwan Semiconductor Manufacturing during the second quarter worth $33,000. Hilton Head Capital Partners LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at $27,000. Evolution Wealth Management Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the last quarter. Finally, Strategic Advocates LLC lifted its stake in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares during the last quarter. Institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.