Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 6.2% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was down 6.2% on Friday. The company traded as low as $400.12 and last traded at $405.05. 21,649,300 shares changed hands during trading, an increase of 66% from the average daily volume of 13,038,793 shares. The stock had previously closed at $431.81.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC continues to benefit from its position as the world’s leading advanced-chip foundry. Its revenue has consistently exceeded Applied Materials’ over the past eight quarters and has shown a steadier upward trend, supporting the view that demand for leading-edge processors remains strong. Applied Materials vs. Taiwan Semiconductor Manufacturing
• Positive Sentiment: Long-term investor articles continue to identify TSMC as a potential multibagger because of its exposure to AI accelerators, advanced manufacturing and sustained customer demand. The thesis assumes that earnings and cash flow can continue compounding through 2030. What a $10,000 Investment in TSMC Stock Will Be Worth by 2030
• Positive Sentiment: Bell Global Equities Fund continues to hold TSMC, indicating that an institutional investor views the company’s scale, technology leadership and AI exposure as attractive despite the recent volatility. Why Bell Global Equities Fund Continues to Favor TSMC
• Positive Sentiment: Taiwan’s semiconductor industry supports a government review of potentially restarting nuclear power plants. Improved electricity availability and reliability could help address one of TSMC’s key operational risks as chip-fabrication capacity expands. Taiwan Semiconductor Industry Group Backs Nuclear Power Review
• Neutral Sentiment: TSMC remains one of the most closely watched semiconductor stocks, reflecting strong investor interest but also heightened sensitivity to earnings expectations, valuation and news affecting the AI supply chain. TSMC Is Attracting Investor Attention
• Negative Sentiment: Investors are increasingly considering whether AI spending could slow in 2027. A deceleration would pressure the semiconductor sector, although TSMC may hold up better than companies with less differentiated positions because it controls a critical manufacturing bottleneck. If AI Spending Slows in 2027
• Negative Sentiment: Bearish commentary argues that TSMC is spending heavily to defend its lead, raising concerns about capital intensity, execution and whether future returns will justify the investment. Those concerns may be contributing to pressure on the shares after their strong run. TSMC: Spending Its Lead to Keep It

Analyst Upgrades and Downgrades

TSM has been the subject of several research analyst reports. Needham & Company LLC raised their target price on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Susquehanna boosted their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research note on Thursday, July 16th. DA Davidson reissued a “buy” rating and set a $500.00 price objective on shares of Taiwan Semiconductor Manufacturing in a report on Friday, October 16th. Barclays increased their price objective on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a report on Friday, October 16th. Finally, TD Cowen raised their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of $528.78.

Taiwan Semiconductor Manufacturing Trading Down 6.2%

The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a 50 day simple moving average of $435.00 and a 200-day simple moving average of $399.49. The firm has a market cap of $2.10 trillion, a P/E ratio of 26.07, a P/E/G ratio of 0.82 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data 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. The business had revenue of $46.72 billion for the quarter, compared to analysts’ expectations of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The company’s revenue for the quarter was up 41.2% on a year-over-year basis. During the same period in the prior year, the firm earned $2.92 EPS. On average, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS 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. 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 is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 22.27%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the acquisition, the vice president directly owned 14,051 shares in the company, valued at approximately $1,026,566.06. This represents a 7.66% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, VP Lipen Yuan bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The stock was acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the acquisition, the vice president owned 6,000 shares in the company, valued at approximately $447,000. The trade was a 20.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired 7,043 shares of company stock valued at $530,986 in the last quarter. 1.11% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in TSM. Tiger Global Management LLC increased 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 worth $1,880,717,000 after acquiring an additional 1,839,600 shares in the last quarter. Sei Investments Co. lifted its holdings in Taiwan Semiconductor Manufacturing by 11.8% during the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after purchasing an additional 274,389 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in Taiwan Semiconductor Manufacturing by 67.2% during the third quarter. Assenagon Asset Management S.A. now owns 1,717,515 shares of the semiconductor company’s stock valued at $783,513,000 after purchasing an additional 690,523 shares in the last quarter. Bessemer Group Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 7.9% in the first quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company’s stock valued at $602,147,000 after purchasing an additional 130,602 shares during the period. Finally, Bank Julius Baer & Co. Ltd Zurich grew its position in shares of Taiwan Semiconductor Manufacturing by 25.1% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 1,210,323 shares of the semiconductor company’s stock valued at $552,116,000 after purchasing an additional 242,640 shares during the period. 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 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.