Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – What’s Next?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 2.7% during trading on Wednesday . The company traded as low as $318.54 and last traded at $318.7010. Approximately 11,690,180 shares were traded during trading, a decline of 26% from the average daily volume of 15,812,262 shares. The stock had previously closed at $327.43.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Analysts highlight TSMC’s AI leadership and limited near-term competition, supporting upside from sustained GPU and HPC demand. TSMC Stock Can Keep Winning From AI, J.P. Morgan Says.
• Positive Sentiment: Goldman Sachs and other brokers raised targets and reiterated conviction that AI-driven capacity and pricing power justify a higher valuation. Goldman Sachs stuns with Taiwan Semiconductor stock price target
• Positive Sentiment: Policy shifts that could allow NVIDIA to sell H200 GPUs to China may create a multi-year revenue tail for TSMC if NVIDIA ramps production on TSMC nodes. Why an NVIDIA Chip Could Supercharge TSMC’s Next Rally
• Neutral Sentiment: TSMC secured a one‑year U.S. export license to keep importing U.S. equipment for China operations—reduces a near-term operational risk but still leaves longer-term policy uncertainty. Why Is Taiwan Semiconductor Stock Gaining Tuesday?
• Neutral Sentiment: TSMC Arizona named a new treasurer as U.S. operations expand—operational governance detail that supports U.S. buildout but is not a major earnings driver. TSMC Arizona Names New Treasurer as US Operations Expand
• Negative Sentiment: TSMC is at/near 52‑week highs and carries a premium multiple; some analysts and investors warn of profit‑taking and near‑term downside if guidance or margin commentary disappoints. TSM Hits 52-Week High: Should You Hold the Stock or Book Profits?
• Negative Sentiment: Geopolitical and export-approval risk remains a wildcard (e.g., U.S./China approvals for large GPU sales); policy reversals could remove the potential China tail or reintroduce supply restrictions. Taiwan Semiconductor: The Ultimate AI Infrastructure Play With A $358 Target And +18% Upside

Analysts Set New Price Targets

TSM has been the topic of several research analyst reports. Itau BBA Securities assumed coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, October 7th. They set an “outperform” rating on the stock. The Goldman Sachs Group reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday. Needham & Company LLC restated a “buy” rating and set a $360.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, October 27th. Susquehanna lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the stock a “positive” rating in a research note on Friday, October 10th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, December 29th. Eight research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and a consensus price target of $355.00.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a 50 day moving average of $294.52 and a two-hundred day moving average of $268.26. The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.47 and a current ratio of 2.69. The stock has a market cap of $1.65 trillion, a PE ratio of 32.69, a PEG ratio of 0.92 and a beta of 1.29.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its earnings results on Friday, November 14th. The semiconductor company reported $14.32 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 43.72% and a return on equity of 34.34%. Equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Tuesday, March 17th will be given a dividend of $0.9678 per share. This represents a $3.87 annualized dividend and a yield of 1.2%. The ex-dividend date is Tuesday, March 17th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.83. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 25.74%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently made changes to their positions in the business. Jennison Associates LLC raised its holdings in shares of Taiwan Semiconductor Manufacturing by 26.7% during the second quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company’s stock worth $2,728,478,000 after acquiring an additional 2,537,760 shares in the last quarter. Brown Advisory Inc. boosted its holdings in Taiwan Semiconductor Manufacturing by 43.2% during the second quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company’s stock valued at $1,506,389,000 after acquiring an additional 2,006,745 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 109.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company’s stock worth $798,640,000 after buying an additional 1,842,951 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its holdings in Taiwan Semiconductor Manufacturing by 268.2% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock valued at $566,152,000 after purchasing an additional 1,820,852 shares during the period. Finally, Alliancebernstein L.P. increased its holdings in shares of Taiwan Semiconductor Manufacturing by 18.0% during the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company’s stock worth $2,368,587,000 after purchasing an additional 1,593,786 shares during the period. Institutional investors and hedge funds 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.