Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Stock Now Rated “Buy” by Wall Street Analysts

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) has earned a consensus recommendation of “Buy” from the sixteen brokerages that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and three have issued a strong buy rating on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $524.89.

TSM has been the topic of a number of recent research reports. Sanford C. Bernstein increased their price target on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, October 6th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Susquehanna upped their price objective 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, Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 target price on the stock.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of NYSE TSM opened at $430.69 on Thursday. The stock has a market cap of $2.23 trillion, a price-to-earnings ratio of 31.07, a P/E/G ratio of 0.92 and a beta of 1.37. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The stock’s 50-day moving average is $434.77 and its 200 day moving average is $416.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%. On average, sell-side analysts anticipate that Taiwan Semiconductor Manufacturing will post 16.60 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be paid a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is 24.75%.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s September revenue reportedly increased 54.6% year over year, while July–September revenue exceeded the high end of management’s guidance even after conversion into U.S. dollars. The performance reinforces expectations for continued strength in advanced AI chip manufacturing. TSMC Monthly Revenue Analysis
• Positive Sentiment: Analysts expect robust high-performance computing revenue, driven by hyperscalers and other major customers purchasing AI chips. JPMorgan and Citigroup reportedly see additional revenue growth even after TSMC’s record third-quarter sales. What Analysts Are Watching With TSMC Results
• Positive Sentiment: Several analysts have raised their fiscal 2026 and 2027 EPS estimates, reflecting confidence in TSMC’s pricing power, advanced-node leadership and expanding AI demand. TSM Analyst Estimates
• Neutral Sentiment: The key issue for Thursday’s report is whether gross margins, capital spending and forward guidance can justify TSMC’s elevated AI valuation. Revenue growth is already widely anticipated, so investors may focus more on profitability and capacity expansion plans. TSMC Earnings Swing and AI Premium
• Neutral Sentiment: TSMC is also involved in a roughly $2 billion agreement for GlobalFoundries to manufacture U.S. silicon interposers, supporting AI-chip packaging and supply-chain diversification, although the financial impact for TSMC is not yet clear. GlobalFoundries Secures New York Fab Funding
• Negative Sentiment: Options activity and historical trading patterns suggest investors expect volatility and a possible post-earnings decline. TSMC is testing its 50-day moving average, indicating technical pressure ahead of the catalyst. Barchart TSM Earnings Outlook
• Negative Sentiment: Some investors are taking profits across semiconductor stocks, while bear investor Michael Burry has warned that AI infrastructure spending may leave chip stocks overpriced if customers cannot generate sufficient returns. Michael Burry Bets Against Chip Stocks

Insider Activity

In related news, VP Lipen Yuan acquired 1,000 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were purchased 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. This represents a 20.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, VP Bor-Zen Tien bought 3,000 shares of the stock in a transaction dated Tuesday, July 21st. The stock was bought at an average cost of $74.39 per share, with a total value of $223,170.00. Following the purchase, the vice president owned 4,000 shares in the company, valued at $297,560. The trade was a 300.00% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders have purchased 16,043 shares of company stock valued at $1,185,746. 1.11% of the stock is currently owned by insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently bought and sold shares of TSM. Brookstone Capital Management raised its stake in Taiwan Semiconductor Manufacturing by 87.3% in the second quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company’s stock valued at $12,008,000 after buying an additional 11,719 shares during the last quarter. Y Intercept Hong Kong Ltd grew its stake in shares of Taiwan Semiconductor Manufacturing by 273.2% during the first quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company’s stock worth $27,438,000 after acquiring an additional 59,435 shares during the last quarter. Opal Capital LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 72.5% during the first quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company’s stock worth $9,384,000 after acquiring an additional 11,666 shares during the last quarter. Western Wealth Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 27.4% during the first quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company’s stock worth $9,447,000 after acquiring an additional 6,013 shares during the last quarter. Finally, Elevation Point Wealth Partners LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 306.7% during the first quarter. Elevation Point Wealth Partners LLC now owns 52,397 shares of the semiconductor company’s stock valued at $17,728,000 after acquiring an additional 39,514 shares in 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 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.