Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 6.3% Higher – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price shot up 6.3% on Wednesday . The stock traded as high as $419.70 and last traded at $419.1990. 17,600,443 shares were traded during mid-day trading, an increase of 26% from the average session volume of 13,974,413 shares. The stock had previously closed at $394.41.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported April revenue of NT$410.73 billion ($13.08 billion), up 17.5% year over year, signaling that AI chip demand is still supporting strong growth. TSMC Revenue Surges 17.5% in April — What It Means for Nvidia and Other AI Chip Stocks
• Positive Sentiment: TSMC and Sony Semiconductor Solutions said they plan to form a new joint venture in Japan to develop and manufacture next-generation image sensors, expanding TSMC’s exposure to another advanced semiconductor market. Sony, TSMC plan new Japan joint venture for next-generation image sensors
• Positive Sentiment: Investor commentary has remained constructive, with articles highlighting TSMC’s strong growth relative to its valuation and its position as a key “pick-and-shovel” beneficiary of the AI buildout. This Tech Stock Is the Quiet Monopoly Nobody on Wall Street Talks About
• Neutral Sentiment: Some coverage noted that monthly revenue growth may have dipped sequentially, but the broader trend remains solid and does not appear to be changing the long-term thesis. TSMC sees strong growth as AI demand holds up
• Negative Sentiment: There is also ongoing investor attention on potential foundry competition and customer diversification efforts, which could weigh on sentiment if rivals gain share over time. TSMC: Early Signs Of Formidable Foundry Competition

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Wedbush reissued an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. TD Cowen lifted their price target on Taiwan Semiconductor Manufacturing from $325.00 to $370.00 and gave the stock a “hold” rating in a report on Friday, January 16th. Finally, Barclays upped their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Buy” and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Down 0.7%

The stock has a 50 day moving average price of $361.06 and a 200 day moving average price of $330.36. The company has a market capitalization of $2.13 trillion, a P/E ratio of 34.20, a PEG ratio of 1.21 and a beta of 1.39. The company has a current ratio of 2.51, a quick ratio of 2.32 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%.The business had revenue of $30.65 billion during the quarter. On average, research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.24 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be given a dividend of $0.9503 per share. This represents a $3.80 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 24.71%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the firm’s stock in a transaction on Sunday, March 22nd. The stock was acquired at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the purchase, the vice president owned 9,051 shares of the company’s stock, valued at $506,222.43. This trade represents a 12.42% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently bought and sold shares of TSM. Twin City Private Wealth LLC boosted its position in Taiwan Semiconductor Manufacturing by 0.3% during 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 period. Financial Life Planners increased its holdings in shares of Taiwan Semiconductor Manufacturing by 3.4% in the 1st quarter. Financial Life Planners now owns 786 shares of the semiconductor company’s stock worth $266,000 after buying an additional 26 shares during the last quarter. Corus Family Wealth Advisors lifted its position in Taiwan Semiconductor Manufacturing by 1.1% in the 1st quarter. Corus Family Wealth Advisors now owns 2,401 shares of the semiconductor company’s stock worth $811,000 after buying an additional 26 shares during the last quarter. Lodestar Private Asset Management LLC grew its position in Taiwan Semiconductor Manufacturing by 0.9% during the first quarter. Lodestar Private Asset Management LLC now owns 2,896 shares of the semiconductor company’s stock valued at $979,000 after acquiring an additional 27 shares during the last quarter. Finally, Mitchell Sinkler & Starr PA grew its holdings in shares of Taiwan Semiconductor Manufacturing by 1.9% during the 4th quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock valued at $450,000 after purchasing an additional 28 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

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.