Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Up 2.4% – What’s Next?
by Renee Jackson · The Cerbat GemTaiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s share price shot up 2.4% during mid-day trading on Wednesday . The stock traded as high as $430.55 and last traded at $422.3450. 14,511,174 shares traded hands during mid-day trading, an increase of 5% from the average session volume of 13,874,326 shares. The stock had previously closed at $412.32.
Key Taiwan Semiconductor Manufacturing News
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: TSMC is being framed as one of the best ways to play the AI semiconductor boom, with articles noting its central role in fabricating advanced chips for major designers and comparing it favorably against peers like Broadcom and ASML. ASML vs. TSMC: Better Semi Stock to Buy Right Now?
- Positive Sentiment: Coverage says TSMC’s latest results and guidance keep the stock close to fresh highs, supported by strong AI chip demand and a larger capital spending plan that signals confidence in future growth. TSM vs Broadcom: Both Nearing 52-Week High, Only One is a Buy
- Positive Sentiment: TSMC executives said AI energy constraints are pushing the industry toward more efficient chip designs, reinforcing the company’s importance in next-generation semiconductor development. Energy use forcing rethink of AI chip design, TSMC says
- Positive Sentiment: Another report emphasized TSMC as a potential value play versus hotter chip names, suggesting investors still see room for upside even after a strong run. Beyond Micron. Why TSMC Might Be the Bigger Value Play in Semis as the Cycle Broadens
- Neutral Sentiment: Reuters reported that MediaTek supports both TSMC and Intel advanced packaging technologies, which is notable for the ecosystem but does not directly change TSMC’s near-term outlook. Taiwan’s MediaTek says it supports both TSMC and Intel’s advanced packaging technologies
- Negative Sentiment: One report raised the possibility that TSMC may increase 3nm process prices, which could attract customer pushback if pricing becomes too aggressive, even though it also reflects strong demand. Report: Taiwan Semiconductor Manufacturing Company Ltd. (TSM.US) to Raise 3nm Process Prices by Up to 15% in 2H, May Hike Another 10% Next Year
Analyst Ratings Changes
Several brokerages have issued reports on TSM. Needham & Company LLC lifted their target price on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, March 20th. DA Davidson reiterated a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Finally, Barclays lifted their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $404.29.
Check Out Our Latest Analysis on Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Price Performance
The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a market cap of $2.17 trillion, a PE ratio of 34.78, a P/E/G ratio of 1.23 and a beta of 1.39. The firm’s fifty day simple moving average is $376.65 and its two-hundred day simple moving average is $342.03.
Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The business had revenue of $30.65 billion for the quarter. As a group, research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 EPS for the current year.
Taiwan Semiconductor Manufacturing Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is presently 24.71%.
Insider Activity at Taiwan Semiconductor Manufacturing
In other news, VP Bor-Zen Tien purchased 2,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were acquired at an average price of $69.91 per share, with a total value of $139,820.00. Following the completion of the acquisition, the vice president directly owned 11,051 shares of the company’s stock, valued at $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the transaction, the vice president directly owned 2,495,165 shares in the company, valued at $174,237,371.95. This represents a 7.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have acquired 3,346 shares of company stock worth $218,005 in the last ninety days. Insiders own 1.11% of the company’s stock.
Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing
Hedge funds have recently modified their holdings of the stock. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $25,000. Hilton Head Capital Partners LLC purchased a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $27,000. Stephens Consulting LLC raised its stake 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 purchasing an additional 41 shares in the last quarter. Evolution Wealth Management Inc. raised its stake in Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC raised its stake 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 purchasing an additional 36 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 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.