Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading Down 2.1% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price was down 2.1% during trading on Thursday . The company traded as low as $429.50 and last traded at $434.7080. Approximately 18,332,566 shares traded hands during mid-day trading, an increase of 31% from the average session volume of 13,991,765 shares. The stock had previously closed at $444.23.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is expanding its global N3 3-nanometer capacity in Taiwan, Arizona, and Japan to meet surging AI chip demand, reinforcing expectations for long-term revenue growth. How Taiwan Semiconductor’s Global N3 Expansion Plan Is Taking Shape
• Positive Sentiment: Wall Street commentary remains constructive, with multiple reports saying TSMC is still one of the preferred ways to play the AI semiconductor boom and that analysts remain broadly bullish. Wall Street Bulls Look Optimistic About TSMC (TSM): Should You Buy?
• Positive Sentiment: Analyst estimate revisions were modestly higher for FY2027 earnings, and a separate bullish write-up argued that TSMC remains a standout manufacturing franchise even as capital spending normalizes. TSMC vs. NVIDIA: Which AI Semiconductor Stock Should You Buy in July? TSMC: Even In CapEx Normalization, The Messiah Of Manufacturing Rules
• Positive Sentiment: There was also a reported insider purchase by TSMC Arizona treasurer Bor-Zen Tien, which can be read as a small confidence signal from management. TSMC Arizona Announces Treasurer Change Effective July 1, 2026
• Neutral Sentiment: One update noted a management change at TSMC Arizona, but this appears administrative rather than a major operating catalyst. TSMC Arizona Announces Treasurer Change Effective July 1, 2026
• Negative Sentiment: Chip stocks sold off across Asia, and TSMC fell with the group as investors rotated out of semis ahead of U.S. jobs data, adding pressure to the shares. Asian stocks slide on chip sell-off as markets await US jobs data
• Negative Sentiment: Recent market coverage also highlighted that TSMC had run hard toward highs, raising valuation and bubble-risk concerns and encouraging some profit taking after the rally. Intel Drops 7%, AMD Slides 5%, Taiwan Semiconductor Falls 6% as BoA Flags “Bubble Risk”

Analyst Upgrades and Downgrades

TSM has been the topic of several recent analyst reports. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 22nd. Needham & Company LLC lifted their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research note on Thursday, April 16th. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Zacks Research cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 16th. Finally, Bank of America raised their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Taiwan Semiconductor Manufacturing has a consensus rating of “Buy” and an average target price of $449.38.

Taiwan Semiconductor Manufacturing Trading Down 2.1%

The firm has a market cap of $2.25 trillion, a price-to-earnings ratio of 36.17, a PEG ratio of 1.20 and a beta of 1.36. 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 business has a fifty day moving average of $419.50 and a two-hundred day moving average of $367.06.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The firm 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%. As a group, equities analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

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

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the completion of the transaction, the vice president directly owned 5,000 shares of the company’s stock, valued at $395,950. This trade represents a 25.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Bor-Zen Tien acquired 2,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the purchase, the vice president owned 11,051 shares in the company, valued at approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders acquired 5,496 shares of company stock worth $404,567. 1.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC raised its stake in Taiwan Semiconductor Manufacturing by 20.9% during the fourth quarter. Brighton Jones LLC now owns 10,930 shares of the semiconductor company’s stock worth $2,159,000 after purchasing an additional 1,892 shares during the period. Gamco Investors INC. ET AL purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $701,000. Bank of Nova Scotia increased its holdings in shares of Taiwan Semiconductor Manufacturing by 12.8% during the 2nd quarter. Bank of Nova Scotia now owns 15,697 shares of the semiconductor company’s stock worth $3,556,000 after buying an additional 1,784 shares during the last quarter. FWL Investment Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 26.5% in the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after buying an additional 53 shares during the period. Finally, Main Street Financial Solutions LLC purchased a new position in shares of Taiwan Semiconductor Manufacturing in the 2nd quarter worth about $270,000. 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.