Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.7% – Time to Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 2.7% during mid-day trading on Thursday . The company traded as low as $403.50 and last traded at $408.3580. 24,773,512 shares were traded during mid-day trading, an increase of 77% from the average session volume of 14,027,875 shares. The stock had previously closed at $419.48.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record second-quarter results, with net profit up 77% to a record high and revenue rising 33.7%, easily beating estimates and reinforcing demand for AI-related chips. Reuters: TSMC Q2 profit jumps 77% to record, far surpasses expectations
• Positive Sentiment: The company raised its 2026 revenue outlook above 40% growth, signaling management confidence that AI demand will stay strong. CNBC: TSMC second-quarter profit jumps 23%, beating estimates, on high-end chip boom
• Positive Sentiment: TSMC announced an additional $100 billion investment in U.S. manufacturing, lifting its total U.S. commitment to $265 billion and expanding advanced-node capacity for AI chips. Reuters: TSMC’s second-quarter profit seen hitting record on AI boom
• Neutral Sentiment: The stock is also being weighed by broader semiconductor weakness and market worries that AI infrastructure spending may be peaking or becoming less profitable for chipmakers. Barron’s: Sandisk, UnitedHealth, J.B. Hunt, TSMC, and More Stocks That Explain Today’s Market
• Negative Sentiment: Investors seem concerned that the massive capex increase tied to U.S. expansion could pressure future margins, even after the earnings beat, which is helping trigger the selloff in TSM shares. Invezz: Why is TSMC stock falling despite record Q2 earnings?

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on TSM. Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a research note on Sunday, March 22nd. Bank of America boosted their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $452.50.

Taiwan Semiconductor Manufacturing Stock Down 2.7%

The business has a fifty day moving average of $427.18 and a 200 day moving average of $377.06. The stock has a market cap of $2.12 trillion, a price-to-earnings ratio of 33.97, a P/E/G ratio of 1.05 and a beta of 1.36. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its earnings results on Thursday, July 16th. The semiconductor company reported $4.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.82 by $0.49. The firm had revenue of $39.89 billion during the quarter, compared to analysts’ expectations of $39.85 billion. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company’s revenue was up 33.7% compared to the same quarter last year. During the same period in the previous year, the company earned $2.47 earnings per share. On average, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.44 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s payout ratio is 24.71%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 1,000 shares of the stock in a transaction on Monday, June 29th. The shares were purchased at an average cost of $76.64 per share, with a total value of $76,640.00. Following the completion of the transaction, the vice president directly owned 12,051 shares of the company’s stock, valued at $923,588.64. This represents a 9.05% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Lipen Yuan bought 1,000 shares of the business’s stock in a transaction on Monday, June 22nd. The shares were bought at an average price of $79.19 per share, for a total transaction of $79,190.00. Following the completion of 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 6,857 shares of company stock valued at $512,334. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several large investors have recently made changes to their positions in TSM. Capital Research Global Investors grew its holdings in shares of Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after purchasing an additional 1,281,648 shares during the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter worth about $961,000. Meridian Wealth Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 27.9% during the 4th quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock valued at $20,049,000 after purchasing an additional 14,406 shares during the last quarter. Y Intercept Hong Kong Ltd lifted its holdings in Taiwan Semiconductor Manufacturing by 273.2% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company’s stock valued at $27,438,000 after purchasing an additional 59,435 shares during the last quarter. Finally, Boyer Financial Services Inc. acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $648,000. Institutional investors own 16.51% of the company’s stock.

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.