Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.5% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 2.5% during mid-day trading on Wednesday. The company traded as low as $391.61 and last traded at $394.8110. 14,334,138 shares changed hands during trading, an increase of 10% from the average session volume of 13,022,273 shares. The stock had previously closed at $404.80.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s position as a major foundry for multiple chip designers—including Nvidia, AMD, Apple and Broadcom—could let it benefit broadly from AI-chip demand. Recent coverage also highlights the potential contribution of its advanced manufacturing and upcoming 2-nanometer ramp. Article: Better AI Semiconductor Monopoly Stock: Taiwan Semiconductor vs. ASML
• Positive Sentiment: Vice President Lipen Yuan bought 1,000 shares, increasing his reported holdings by 14.29%. The purchase may signal confidence, though its size is modest relative to the company. Article: Taiwan Semiconductor Manufacturing VP Buys Stock
• Neutral Sentiment: TSMC’s latest quarterly results beat analyst estimates, with revenue up 41.2% year over year, providing a strong fundamental backdrop. However, investors are now looking for the next sales update to sustain that momentum.
• Negative Sentiment: The upcoming sales report creates a near-term expectation risk: failure to meet the pace implied by the quarterly revenue hurdle could disappoint investors. Broader weakness in AI stocks and reports of hedge funds turning underweight the sector may also be weighing on sentiment. Article: TSMC Stocks Move Lower as November Sales Data Face a $53.3 Billion Quarterly Hurdle Article: AI Stocks Lose $5 Trillion as Hedge Funds Turn Underweight

Analyst Upgrades and Downgrades

TSM has been the topic of a number of recent analyst reports. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a report on Friday, October 16th. TD Cowen lifted their target price 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. Needham & Company LLC lifted their target price 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. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Finally, Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Three research 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 stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and an average target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 2.5%

The business has a 50-day simple moving average of $434.50 and a 200-day simple moving average of $400.22. 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 market cap of $2.05 trillion, a price-to-earnings ratio of 25.41, a price-to-earnings-growth ratio of 0.81 and a beta of 1.44.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 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 company had revenue of $46.72 billion during the quarter, compared to analysts’ expectations of $45.67 billion. During the same quarter in the previous year, the business posted $2.92 EPS. The firm’s revenue was up 41.2% on a year-over-year basis. On average, equities 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 business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, December 10th. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 22.27%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average cost of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the transaction, the vice president owned 6,000 shares in the company, valued at approximately $447,000. The trade was a 20.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders bought a total of 7,043 shares of company stock worth $529,416 over the last 90 days. Company insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the company. Gryphon Financial Partners LLC grew its holdings in Taiwan Semiconductor Manufacturing by 8.8% during the third quarter. Gryphon Financial Partners LLC now owns 14,562 shares of the semiconductor company’s stock worth $6,643,000 after acquiring an additional 1,182 shares during the period. Fairscale Capital LLC boosted its stake in Taiwan Semiconductor Manufacturing by 5.2% in the 3rd quarter. Fairscale Capital LLC now owns 808 shares of the semiconductor company’s stock worth $369,000 after purchasing an additional 40 shares during the period. M&G PLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% in the third quarter. M&G PLC now owns 502,093 shares of the semiconductor company’s stock worth $228,954,000 after buying an additional 50,176 shares during the period. Kestra Investment Management LLC boosted its position in Taiwan Semiconductor Manufacturing by 37.4% during the 3rd quarter. Kestra Investment Management LLC now owns 2,643 shares of the semiconductor company’s stock worth $1,205,000 after acquiring an additional 719 shares during the period. Finally, Clear Wave Wealth Management LLC grew its position in Taiwan Semiconductor Manufacturing by 6.3% during the third quarter. Clear Wave Wealth Management LLC now owns 7,379 shares of the semiconductor company’s stock valued at $3,366,000 after purchasing an additional 435 shares in 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.