Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 4.4% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s stock price dropped 4.4% on Tuesday . The stock traded as low as $428.11 and last traded at $432.0490. 14,814,078 shares changed hands during trading, an increase of 6% from the average session volume of 13,973,233 shares. The stock had previously closed at $451.79.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Multiple TSMC insiders, including the CEO and several vice presidents and senior executives, bought shares on July 7, reinforcing confidence in the company’s outlook.
• Positive Sentiment: Citi reportedly reiterated a Buy view and said TSMC is well positioned to raise its 2026 revenue growth outlook and long-term targets.
• Positive Sentiment: Articles highlighted TSMC as a strong momentum stock and an AI beneficiary, suggesting continued investor interest ahead of earnings.
• Neutral Sentiment: Several headlines simply previewed TSMC’s upcoming earnings report, which keeps attention on near-term results but does not by itself change fundamentals.
• Negative Sentiment: Recent coverage noted TSMC had fallen more steeply than the broader market in a prior session, showing some lingering volatility and profit-taking after a strong year.

Analysts Set New Price Targets

TSM has been the subject of several research reports. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday. Needham & Company LLC upped their target price on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Bank of America lifted their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, June 17th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $449.38.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a fifty day simple moving average of $424.41 and a 200 day simple moving average of $372.43. The company has a current ratio of 2.49, a quick ratio of 2.31 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.28 trillion, a price-to-earnings ratio of 36.47, a PEG ratio of 1.09 and a beta of 1.36.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its earnings results on Wednesday, April 15th. The semiconductor company reported $3.49 EPS for the quarter, topping the consensus estimate of $3.31 by $0.18. The firm had revenue of $35.49 billion during the quarter, compared to analysts’ expectations of $35.47 billion. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.Taiwan Semiconductor Manufacturing’s quarterly revenue was up 40.6% compared to the same quarter last year. During the same period last year, the business earned $2.12 earnings per share. As a group, sell-side analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.35 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be given a $1.1136 dividend. This represents a $4.45 dividend on an annualized basis and a yield of 1.0%. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 24.71%.

Insider Activity

In other news, VP Bor-Zen Tien bought 1,000 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was acquired at an average price of $76.64 per share, for a total transaction of $76,640.00. Following the transaction, the vice president directly owned 12,051 shares of the company’s stock, valued at $923,588.64. This trade represents a 9.05% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, VP Lipen Yuan acquired 1,000 shares of the company’s stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $79.19 per share, with a total value of $79,190.00. Following the acquisition, the vice president owned 5,000 shares of the company’s stock, valued at approximately $395,950. This represents a 25.00% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 6,857 shares of company stock worth $512,334. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Large investors have recently modified their holdings of the stock. Twin City Private Wealth LLC raised its holdings in Taiwan Semiconductor Manufacturing by 0.3% during the 1st 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. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 3.4% in the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after purchasing an additional 25 shares during the period. OFS Enterprise LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 4.0% during the second quarter. OFS Enterprise LLC now owns 653 shares of the semiconductor company’s stock worth $312,000 after purchasing an additional 25 shares during the period. Financial Life Planners boosted its holdings in Taiwan Semiconductor Manufacturing by 3.4% during the first 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. Finally, Corus Family Wealth Advisors increased its stake in shares of 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 valued at $811,000 after acquiring an additional 26 shares during the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

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.