Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.2% – Here’s Why

by · The Markets Daily

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM – Get Free Report)’s stock price dropped 1.2% during trading on Wednesday. The stock traded as low as $442.87 and last traded at $446.5740. Approximately 10,152,420 shares were traded during trading, a decline of 24% from the average session volume of 13,324,050 shares. The stock had previously closed at $452.00.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

  • Positive Sentiment: AI infrastructure demand remains the primary catalyst. Analysts argue that TSMC should benefit regardless of which chip designer wins the AI race because it manufactures advanced processors for many leading customers. TSMC Offers AI Upside No Matter Who Wins the Race
  • Positive Sentiment: Recent coverage highlights strong operating momentum, including 36% year-over-year quarterly revenue growth, a 67.7% gross margin, and management’s increased fiscal 2026 revenue-growth outlook of more than 40%. Higher capital-spending guidance of $60 billion to $64 billion signals confidence that demand for high-performance computing will persist. Taiwan Semiconductor: AI Hiccups Lately, But Strong Growth Persists
  • Positive Sentiment: TSMC is reportedly planning wafer-price increases of 3% to 6% beginning in January 2027. Tight foundry capacity and sustained AI demand could improve revenue and profitability if customers accept the higher prices. TSMC Set to Raise Chip Prices Up to 6%
  • Positive Sentiment: Zacks included TSMC among its top-ranked chip stocks for October, citing AI-driven semiconductor and infrastructure growth. Other commentary also characterizes the shares as undervalued relative to their long-term AI opportunity. 4 Top-Ranked Chip Stocks to Buy for Better Returns in October
  • Neutral Sentiment: TSMC committed approximately $29.4 billion to capacity expansion in August, reinforcing its aggressive investment strategy but also increasing near-term capital requirements. TSMC Commits US$29.4 Billion to Capacity Expansion
  • Negative Sentiment: Investors remain aware that geographic diversification could pressure margins, while new supplier-validation efforts for advanced packaging are still years from contributing meaningful capacity. Is Taiwan Semiconductor Stock an Undervalued AI Stock to Buy Right Now?

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on TSM shares. TD Cowen boosted their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Zacks Research raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Bank of America boosted their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Sanford C. Bernstein upped their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Finally, Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average price target of $523.22.

Check Out Our Latest Stock Report on TSM

Taiwan Semiconductor Manufacturing Stock Down 0.0%

The stock’s fifty day moving average price is $419.89 and its 200 day moving average price is $404.86. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a market cap of $2.34 trillion, a P/E ratio of 32.56, a price-to-earnings-growth ratio of 1.00 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. The company had revenue of $39.89 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. As a group, research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.56 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed 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 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, December 10th. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 25.25%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan bought 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares of the company’s stock, valued at $447,000. This represents a 20.00% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Shu-Hua Fang bought 2,000 shares of the business’s stock in a transaction on Thursday, July 2nd. The stock was purchased at an average cost of $77.09 per share, with a total value of $154,180.00. Following the purchase, the senior vice president owned 8,206 shares of the company’s stock, valued at $632,600.54. This represents a 32.23% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 19,106 shares of company stock valued at $1,417,283 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 made changes to their positions in TSM. Twin City Private Wealth LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% in the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after purchasing an additional 25 shares during the last quarter. Graves Light Lenhart Wealth Inc. boosted its position in shares of Taiwan Semiconductor Manufacturing by 3.4% during the second quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after buying an additional 25 shares during the last quarter. OFS Enterprise LLC increased its holdings in Taiwan Semiconductor Manufacturing by 4.0% in the 2nd quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock worth $312,000 after buying an additional 25 shares in the last quarter. Wealthcare Capital Partners LLC increased its holdings in Taiwan Semiconductor Manufacturing by 1.0% in the 2nd quarter. Wealthcare Capital Partners LLC now owns 2,606 shares of the semiconductor company’s stock worth $1,244,000 after buying an additional 25 shares in the last quarter. Finally, Elser Financial Planning Inc raised its position in Taiwan Semiconductor Manufacturing by 2.4% in the 2nd quarter. Elser Financial Planning Inc now owns 1,081 shares of the semiconductor company’s stock worth $516,000 after buying an additional 25 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors.

About Taiwan Semiconductor Manufacturing

(Get Free Report)

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.

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