Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Break Below 200-Day Moving Average – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $400.48 and traded as low as $391.61. Taiwan Semiconductor Manufacturing shares last traded at $394.8110, with a volume of 14,433,232 shares changing hands.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Taiwan tightened short-selling rules and prepared a reported $15 billion fund to support its markets, helping lift TSMC shares in premarket trading after the regional chip rout. Benzinga article
• Positive Sentiment: Nvidia reportedly wants TSMC to make advanced memory chips. If TSMC pursues the opportunity, it could broaden its role in AI hardware and deepen ties with a major customer; the report describes a possibility, not a confirmed project. TipRanks article
• Positive Sentiment: Sanford C. Bernstein raised its price target to $600 from $554 and reiterated an “outperform” rating, signaling confidence in TSMC’s prospects despite the recent sector weakness. MarketBeat analyst update
• Neutral Sentiment: TSMC’s position as a leading manufacturer for Nvidia, AMD and other chip designers supports exposure to AI demand across competing customers. Some coverage also argues the shares trade below their usual valuation range, though that does not ensure a near-term recovery. The Motley Fool article
• Negative Sentiment: The rebound follows a steep regional chip-stock selloff amid worries about AI valuations, spending expectations and growth. That market-wide pressure could keep TSM volatile even as its manufacturing business benefits from AI demand. 24/7 Wall St. article

Wall Street Analysts Forecast Growth

TSM has been the topic of a number of research reports. TD Cowen raised their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Susquehanna boosted their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research note on Thursday, July 16th. Needham & Company LLC increased their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a “buy” rating in a report on Thursday, October 15th. DA Davidson restated a “buy” rating and set a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, October 16th. Finally, Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $533.89.

Taiwan Semiconductor Manufacturing Stock Up 6.2%

The business has a 50-day simple moving average of $431.68 and a two-hundred day simple moving average of $400.77. 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 capitalization of $1.95 trillion, a price-to-earnings ratio of 25.65, a PEG ratio of 0.81 and a beta of 1.44.

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

Taiwan Semiconductor Manufacturing Cuts Dividend

The company 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. 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 annualized dividend and a dividend yield of 1.2%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 22.27%.

Insider Activity

In other news, VP Lipen Yuan purchased 1,000 shares of the company’s 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 purchase, the vice president directly owned 6,000 shares in the company, valued at $447,000. The trade was a 20.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have bought 5,428 shares of company stock worth $411,021 in the last quarter. Insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently added to or reduced their stakes in TSM. Financial Freedom LLC bought a new position in shares of Taiwan Semiconductor Manufacturing during the 3rd quarter worth approximately $44,000. Aberdeen Group plc raised its stake in Taiwan Semiconductor Manufacturing by 449.6% in the 3rd quarter. Aberdeen Group plc now owns 642,465 shares of the semiconductor company’s stock worth $293,086,000 after purchasing an additional 525,566 shares in the last quarter. Moors & Cabot Inc. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 2.3% in the third quarter. Moors & Cabot Inc. now owns 36,897 shares of the semiconductor company’s stock valued at $16,832,000 after buying an additional 838 shares during the period. Valmark Advisers Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 33.6% in the 3rd quarter. Valmark Advisers Inc. now owns 9,313 shares of the semiconductor company’s stock valued at $4,248,000 after acquiring an additional 2,341 shares in the last quarter. Finally, Money Concepts Capital Corp raised its holdings in Taiwan Semiconductor Manufacturing by 6.3% in the 3rd quarter. Money Concepts Capital Corp now owns 2,725 shares of the semiconductor company’s stock valued at $1,243,000 after acquiring an additional 161 shares in the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics.

Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.