Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.9% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were down 1.9% during trading on Monday. The stock traded as low as $444.35 and last traded at $444.8070. Approximately 8,702,864 shares changed hands during trading, a decline of 33% from the average daily volume of 13,044,854 shares. The stock had previously closed at $453.31.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: Analysts at JPMorgan and Citigroup expect additional revenue growth after TSMC’s record third-quarter performance. AI accelerator demand, pricing power, expanding advanced-node capacity and the company’s dominant foundry position remain important bullish factors. MarketWatch analyst preview
• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 EPS forecasts to $16.92 and $22.26, respectively, signaling confidence that accelerating AI demand, higher prices and additional production capacity can support continued earnings growth. MarketBeat estimates
• Positive Sentiment: Longer-term coverage remains favorable because TSMC manufactures a large share of the world’s most advanced AI chips and has been expanding margins through pricing power and scale. Fool long-term outlook
• Neutral Sentiment: Options markets imply a substantial post-earnings move, while historical analysis indicates TSMC stock has not consistently risen after earnings. This highlights elevated event risk rather than a definitive direction. Investopedia earnings volatility preview
• Negative Sentiment: Much of the AI-growth story is already reflected in expectations. Investors are focusing on gross margins, capital expenditures and management’s guidance; merely strong results may not be enough if they fail to exceed the market’s unusually high bar. Invezz earnings preview
• Negative Sentiment: Broader profit-taking across semiconductor stocks and warnings from investor Michael Burry that AI-related chip valuations may be overheated are adding pressure to the sector. TSMC’s shares remain below their early-October peak despite strong revenue, suggesting investors are becoming more valuation-sensitive. 247WallSt market commentary

Wall Street Analysts Forecast Growth

Several research firms have weighed in on TSM. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target on the stock. Bank of America lifted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Zacks Research raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, TD Cowen lifted their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $524.89.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a 50-day moving average of $434.46 and a 200 day moving average of $415.74. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.23 trillion, a PE ratio of 31.05, a PEG ratio of 0.98 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion for the quarter. Equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a $1.0854 dividend. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 24.96%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Shyue-Shyh Lin purchased 2,000 shares of the business’s stock in a transaction that occurred on Sunday, July 19th. The shares were bought at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the acquisition, the vice president owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Bor-Zen Tien purchased 3,000 shares of the company’s stock in a transaction dated Tuesday, July 21st. The shares were purchased at an average cost of $74.39 per share, for a total transaction of $223,170.00. Following the transaction, the vice president directly owned 4,000 shares in the company, valued at approximately $297,560. This represents a 300.00% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 16,043 shares of company stock worth $1,185,746 over the last quarter. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently made changes to their positions in TSM. Fairfield Financial Advisors LTD raised its position in Taiwan Semiconductor Manufacturing by 16.7% during the third quarter. Fairfield Financial Advisors LTD now owns 8,637 shares of the semiconductor company’s stock worth $3,940,000 after acquiring an additional 1,237 shares during the period. Investment Planning Advisors Inc. increased its holdings in Taiwan Semiconductor Manufacturing by 27.0% in the 3rd quarter. Investment Planning Advisors Inc. now owns 1,267 shares of the semiconductor company’s stock valued at $578,000 after purchasing an additional 269 shares during the last quarter. Adirondack Trust Co. increased its stake in Taiwan Semiconductor Manufacturing by 20.4% during the third quarter. Adirondack Trust Co. now owns 667 shares of the semiconductor company’s stock worth $304,000 after purchasing an additional 113 shares during the period. Lodestone Wealth Management LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 2.5% in the third quarter. Lodestone Wealth Management LLC now owns 3,312 shares of the semiconductor company’s stock valued at $1,511,000 after acquiring an additional 81 shares in the last quarter. Finally, Three Magnolias Financial Advisors LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 17.4% during the 3rd quarter. Three Magnolias Financial Advisors LLC now owns 607 shares of the semiconductor company’s stock worth $277,000 after acquiring an additional 90 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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 largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.