Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 3% – Still a Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price rose 3% during trading on Tuesday. The company traded as high as $438.58 and last traded at $437.1240. 8,970,443 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 13,035,786 shares. The stock had previously closed at $424.37.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Strong earnings and AI demand: TSMC reported quarterly revenue of $46.72 billion, up 41.2% year over year, and earnings of $4.60 per share, exceeding analyst expectations. Management highlighted robust AI demand, stronger revenue expectations and continued expansion of advanced-chip capacity. Beyond NVIDIA: Why TSMC Stock Looks Attractive After Q3 Earnings
• Positive Sentiment: Pricing power in advanced packaging: Reports indicate TSMC plans to raise CoWoS AI packaging prices by as much as 20%, while wafer prices could increase 3% to 6%. The moves suggest demand from customers such as Nvidia and AMD continues to exceed available capacity and could support margins. Taiwan Semiconductor Flexes Pricing Power on AI’s Frontline
• Positive Sentiment: Long-term investor support: Bell Global Equities Fund continues to favor TSMC, while investment commentary identifies the company as a key beneficiary of multitrillion-dollar data-center and AI infrastructure spending through 2030. Why Bell Global Equities Fund Continues to Favor TSM
• Neutral Sentiment: Industry power considerations: Taiwan’s semiconductor industry association supports a government review of potentially restarting nuclear plants, reflecting the sector’s need for reliable, affordable electricity. A restart could eventually help operating conditions, but the timing and outcome remain uncertain. Taiwan semiconductor industry group backs government review of nuclear power restart
• Negative Sentiment: Valuation and execution concerns: Bearish commentary warns that heavy spending to preserve TSMC’s technology lead could pressure returns, while questions about AI-stock valuations and the sustainability of infrastructure spending are weighing on the semiconductor group. The stock’s elevated valuation leaves less room for disappointment despite its strong growth.

Wall Street Analyst Weigh In

A number of analysts have weighed in on TSM shares. Barclays upped their target price on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. Susquehanna boosted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Zacks Research raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. DA Davidson restated a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 16th. Finally, Needham & Company LLC raised their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research report on Thursday, October 15th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Trading Down 2.4%

The company has a market capitalization of $2.23 trillion, a price-to-earnings ratio of 27.62, a P/E/G ratio of 0.85 and a beta of 1.37. 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 company’s 50 day simple moving average is $434.85 and its two-hundred day simple moving average is $398.58.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. The business had revenue of $46.72 billion for the quarter, compared to analyst estimates of $45.67 billion. During the same period in the previous year, the company earned $2.92 earnings per share. The business’s revenue for the quarter was up 41.2% on a year-over-year basis. As a group, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is 22.27%.

Insider Activity

In related news, VP Lipen Yuan acquired 350 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average cost of $73.58 per share, with a total value of $25,753.00. Following the transaction, the vice president directly owned 2,000 shares of the company’s stock, valued at $147,160. This trade represents a 21.21% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Bor-Zen Tien acquired 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was bought at an average cost of $73.06 per share, with a total value of $73,060.00. Following the completion of the transaction, the vice president directly owned 14,051 shares in the company, valued at $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 7,043 shares of company stock valued at $530,986. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Cooper Financial Group increased its holdings in shares of Taiwan Semiconductor Manufacturing by 0.3% in the third quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company’s stock valued at $2,880,000 after purchasing an additional 22 shares during the period. Dickmeyer Boyce Financial Management Inc. lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 0.7% during the third quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company’s stock worth $1,578,000 after purchasing an additional 23 shares during the period. Whelan Financial grew its position in Taiwan Semiconductor Manufacturing by 2.3% in the 3rd quarter. Whelan Financial now owns 1,040 shares of the semiconductor company’s stock valued at $474,000 after buying an additional 23 shares during the last quarter. Plan A Wealth LLC grew its position in Taiwan Semiconductor Manufacturing by 0.9% in the 3rd quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company’s stock valued at $1,248,000 after buying an additional 24 shares during the last quarter. Finally, Twin City Private Wealth LLC grew its position in Taiwan Semiconductor Manufacturing by 0.3% in the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock valued at $2,479,000 after buying an additional 25 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.