Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 1.4% – What’s Next?
by Danessa Lincoln · The Markets DailyTaiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price shot up 1.4% on Friday . The company traded as high as $378.00 and last traded at $370.6320. 13,106,059 shares were traded during trading, a decline of 5% from the average session volume of 13,844,785 shares. The stock had previously closed at $365.49.
Taiwan Semiconductor Manufacturing News Roundup
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: Q1 revenue beat — TSMC reported first‑quarter revenue of T$1.134 trillion (~$35.7B), up ~35% year‑over‑year and above consensus, a clear confirmation that AI-related demand is lifting sales. TSMC’s Q1 revenue jumps 35% y/y, beats market forecast
- Positive Sentiment: March month surge — Monthly March revenue was notably stronger (reports cite ~45% YoY for March), reinforcing momentum into the quarter and suggesting robust orders for advanced AI nodes. TSMC Posts 45% March Revenue Surge
- Positive Sentiment: Analyst upgrades/targets — Several brokers have reiterated bullish views and raised targets (one street‑high target cited as ~$600), which supports investor confidence and price upside expectations. TSMC Gets Street-High Target
- Positive Sentiment: Sector lift from AI — TSMC’s results have buoyed other chip names (e.g., AMD) and broader semiconductor sentiment, reinforcing the narrative that TSMC is the primary beneficiary of the AI compute build‑out. TSMC posts 35% jump in revenue
- Neutral Sentiment: Upcoming earnings as catalyst — TSMC reports full Q1 results on April 16; the sales beat reduces downside risk but investors will watch guidance, margin detail and capex plans closely. All Eyes on TSMC Earnings on April 16
- Negative Sentiment: Rising costs and margin pressure risk — Some analysts warn escalating costs (capex, wage/energy/complex node expense) could compress margins over time and test TSMC’s dominance as rivals and customers push for capacity. All Eyes on TSMC Earnings on April 16
- Negative Sentiment: Valuation and positioning risk — After a large YTD/one‑year run and a premium P/E, some investors question how much upside remains vs. the risk of a cyclical pullback; profit‑taking is possible if guidance disappoints. Time to Hold or Book Profit?
- Negative Sentiment: Geopolitical risk — Ongoing geopolitical tensions (Middle East, US‑China/Taiwan dynamics) remain an overarching tail risk that could impact supply chains or investor sentiment despite near‑term demand resilience. TSMC reports forecast‑beating revenue
Analysts Set New Price Targets
Several brokerages have recently weighed in on TSM. Sanford C. Bernstein restated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a report on Friday, January 2nd. The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, January 5th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Freedom Capital upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Finally, Zacks Research downgraded shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Three investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has an average rating of “Buy” and an average target price of $391.43.
Check Out Our Latest Stock Analysis on Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Price Performance
The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.42 and a current ratio of 2.62. The stock has a market capitalization of $1.92 trillion, a PE ratio of 34.80, a P/E/G ratio of 1.00 and a beta of 1.35. The company’s fifty day simple moving average is $350.44 and its two-hundred day simple moving average is $317.71.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. The business had revenue of $30.65 billion for the quarter. As a group, sell-side analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be issued a $0.9503 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 27.89%.
Insider Transactions at Taiwan Semiconductor Manufacturing
In related news, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction that occurred on Sunday, March 22nd. The stock was purchased at an average cost of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the acquisition, the vice president owned 9,051 shares in the company, valued at $506,222.43. This trade represents a 12.42% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.11% of the company’s stock.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently bought and sold shares of the business. Quattro Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $27,000. Stephens Consulting LLC lifted its position in Taiwan Semiconductor Manufacturing by 82.0% during the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 41 shares in the last quarter. Strategic Advocates LLC lifted its position in Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 36 shares in the last quarter. Finally, Ares Financial Consulting LLC acquired a new position in Taiwan Semiconductor Manufacturing during the fourth quarter valued at approximately $29,000. 16.51% of the stock is owned by institutional investors and hedge funds.
About Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.
TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.