Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 6.5% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price traded down 6.5% during mid-day trading on Tuesday . The stock traded as low as $434.19 and last traded at $437.13. 20,290,279 shares changed hands during mid-day trading, an increase of 46% from the average daily volume of 13,864,187 shares. The stock had previously closed at $467.67.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC remains central to the AI chip buildout because of its CoWoS advanced packaging role, and its May revenue rose 30.1% year over year, reinforcing strong demand tied to high-bandwidth memory and AI infrastructure. Why TSMC’s CoWoS Role Keeps Taiwan Semiconductor (TSM) Central to the HBM-Driven AI Chip Boom
• Positive Sentiment: A senior executive’s stock purchase may signal internal confidence, with TSMC VP Lipen Yuan buying 1,000 shares in a recent disclosed transaction. SEC filing for Lipen Yuan transaction
• Neutral Sentiment: Articles this morning also framed TSMC as a beneficiary of AI-related semiconductor momentum and noted renewed investor interest after the stock’s strong run. Taiwan Semiconductor (TSM) Stock Hits New Peak as Price Targets Soar
• Negative Sentiment: TSMC is being pulled down with the broader chip group as U.S. futures weaken and investors rotate out of high-flying semiconductor names after a record-setting rally. Chip Stocks Tumble From Record Heights, Lead Tech Wreck
• Negative Sentiment: Some coverage is raising bubble-risk concerns around Taiwan’s AI stock frenzy and heavy concentration in TSMC-linked names, which could weigh on sentiment if investors grow more cautious. FOMO Really Got Me: Taiwanese Go Deep Into Debt to Amp 100% Stock Rally

Analyst Upgrades and Downgrades

TSM has been the topic of a number of recent analyst reports. DA Davidson restated a “buy” rating and set a $450.00 price objective on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Weiss Ratings reissued a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, June 17th. Needham & Company LLC boosted their price target on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Zacks Research cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Two 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 company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $429.29.

Taiwan Semiconductor Manufacturing Trading Down 6.5%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.31 and a current ratio of 2.49. The firm has a market capitalization of $2.27 trillion, a P/E ratio of 36.37, a price-to-earnings-growth ratio of 1.35 and a beta of 1.38. The firm has a 50 day moving average price of $409.02 and a two-hundred day moving average price of $359.90.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The business had revenue of $30.65 billion during the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%. On average, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.3 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 annualized dividend and a dividend yield of 1.0%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is 29.20%.

Insider Activity

In other news, VP Bor-Zen Tien acquired 2,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $69.91 per share, for a total transaction of $139,820.00. Following the transaction, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This trade represents a 22.10% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Lipen Yuan bought 1,000 shares of the business’s stock in a transaction on Monday, June 22nd. The shares were purchased at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the purchase, the vice president owned 5,000 shares in the company, valued at approximately $395,950. This trade represents a 25.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 4,496 shares of company stock worth $327,927 over the last 90 days. 1.11% of the stock is owned by company insiders.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently bought and sold shares of the business. Tiger Global Management LLC grew its position in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares in the last quarter. Van ECK Associates Corp increased its stake in shares of Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after acquiring an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in Taiwan Semiconductor Manufacturing during the fourth quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. grew its stake in Taiwan Semiconductor Manufacturing by 168.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock valued at $636,077,000 after purchasing an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP acquired a new position in Taiwan Semiconductor Manufacturing in the 3rd quarter worth about $360,443,000. 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.