Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.2% – Still a Buy?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) were up 1.2% during mid-day trading on Friday . The stock traded as high as $435.37 and last traded at $433.0910. 10,474,495 shares traded hands during trading, a decline of 22% from the average session volume of 13,397,439 shares. The stock had previously closed at $428.03.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record August revenue of NT$514.81 billion, approximately $16.35 billion, up 53.3% year over year and 10.1% from July. The acceleration signals strong orders from cloud providers and enterprise hardware companies, particularly for advanced AI chips. TSMC Revenue Jumps 53% in August, Signaling Strong AI Chip Demand
• Positive Sentiment: The revenue report is also constructive for major customers such as Nvidia because TSMC is a critical supplier of advanced processors and packaging. Capacity bookings extending years into the future suggest that AI infrastructure spending remains robust. TSMC Just Delivered Fantastic News for Nvidia Shareholders
• Positive Sentiment: Analysts remain broadly bullish, with a consensus Buy rating and an average price target of $523.22, above the current trading level. Erste Group also modestly raised its FY2027 EPS estimate to $21.72. CEO Che-Chia Wei’s open-market purchase adds a small signal of management confidence. TSMC CEO Acquires Shares
• Neutral Sentiment: TSMC and ASML are developing large-format High-NA EUV photomasks that could improve productivity and reduce manufacturing costs. However, planned high-volume adoption begins around 2030, so the financial benefit is several years away. TSMC Collaborates to Expand Large-Format Photomasks
• Negative Sentiment: The stock previously declined despite the record sales report because investors wanted an even stronger outlook. Higher Treasury yields, inflation concerns and broader weakness in technology shares are pressuring valuation multiples. At roughly 31 times earnings, TSMC is vulnerable to profit-taking after gaining more than 60% over the past year. TSMC Falls After Record Sales

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Bank of America increased their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. DA Davidson lifted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Stifel Nicolaus assumed coverage on shares of Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 target price for the company. Finally, TD Cowen upped their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research note on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a market capitalization of $2.25 trillion, a price-to-earnings ratio of 31.25, a PEG ratio of 0.96 and a beta of 1.39. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The company has a fifty day simple moving average of $419.02 and a two-hundred day simple moving average of $400.11.

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 during the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be given a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 25.25%.

Insiders Place Their Bets

In related news, VP Shyue-Shyh Lin bought 2,000 shares of the company’s stock in a transaction dated Sunday, July 19th. The stock was purchased at an average price of $71.71 per share, with a total value of $143,420.00. Following the completion of the acquisition, the vice president owned 28,269 shares of the company’s stock, valued at $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 Securities & Exchange Commission, which is available through the SEC website. Also, VP Bor-Zen Tien purchased 3,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, July 21st. The stock was bought at an average price of $74.39 per share, for a total transaction of $223,170.00. Following the completion of the purchase, the vice president owned 4,000 shares in the company, valued at $297,560. This represents a 300.00% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 21,106 shares of company stock worth $1,571,733 in the last ninety days. Insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Brighton Jones LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 20.9% during the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after purchasing an additional 1,892 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in Taiwan Semiconductor Manufacturing in the 2nd quarter valued at approximately $701,000. Bank of Nova Scotia boosted its position in Taiwan Semiconductor Manufacturing by 12.8% during the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after buying an additional 1,784 shares during the period. FWL Investment Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 26.5% during the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after buying an additional 53 shares during the period. Finally, Main Street Financial Solutions LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter worth approximately $270,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.