Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 4.7% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares were down 4.7% during mid-day trading on Wednesday . The stock traded as low as $372.72 and last traded at $373.8350. 21,256,787 shares were traded during trading, an increase of 50% from the average session volume of 14,132,255 shares. The stock had previously closed at $392.31.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record second-quarter results, with revenue of roughly $40 billion, and raised its outlook. Strong demand from artificial-intelligence and high-performance-computing customers supports the company’s growth outlook. Record results and raised guidance
• Positive Sentiment: Needham raised its TSMC price target to $530 from $480 and maintained a buy rating, adding to a generally bullish analyst consensus. The target increase reflects expectations for sustained AI-chip and advanced-node demand. Needham raises TSMC price target
• Positive Sentiment: Multiple TSMC vice presidents disclosed open-market purchases totaling hundreds of thousands of dollars. Although small relative to TSMC’s market value, the buying provides a modest confidence signal from company insiders. TSMC insider buying
• Positive Sentiment: Amkor’s 10-year agreement with TSMC for an advanced-packaging facility in Arizona highlights expanding U.S. capacity and the strategic importance of TSMC’s chips to AI and high-performance-computing supply chains. Amkor lands long-term TSMC Arizona deal
• Neutral Sentiment: TSMC’s Japan Advanced Semiconductor Manufacturing plant began gradually resuming operations after a strong earthquake. Workers were evacuated safely and the construction site was not damaged, but some construction activity remains suspended as a precaution against aftershocks. TSMC Japan plant resumes operations
• Negative Sentiment: A broader technology and semiconductor slump, driven by concerns about the durability of AI spending and rising Chinese chipmaking competition, pressured chip stocks across Asian markets. TSMC’s pullback despite strong earnings suggests investors are taking profits and demanding evidence that elevated AI expectations can continue. Semiconductor slump hits Asian markets

Analyst Ratings Changes

TSM has been the subject of a number of analyst reports. Bank of America raised their price target on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. DA Davidson upped their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Barclays increased their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Finally, Needham & Company LLC lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $496.25.

Taiwan Semiconductor Manufacturing Price Performance

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 company has a market capitalization of $1.94 trillion, a P/E ratio of 26.97, a P/E/G ratio of 0.92 and a beta of 1.36. The company has a 50 day moving average price of $427.77 and a 200 day moving average price of $383.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%.The business had revenue of $39.89 billion for the quarter. On average, equities analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.34 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced 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. The ex-dividend date is Wednesday, September 16th. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Shyue-Shyh Lin purchased 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 21st. The shares were acquired at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the purchase, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This represents a 3.42% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the sale, the vice president owned 2,495,165 shares of the company’s stock, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders acquired 14,857 shares of company stock worth $1,099,124. 1.11% of the stock is currently owned by corporate insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently added to or reduced their stakes in the company. Cedar Mountain Advisors LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% during the second quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after buying an additional 30 shares in the last quarter. Quattro Advisors LLC acquired a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at about $25,000. Hilton Head Capital Partners LLC acquired a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter worth about $27,000. Evolution Wealth Management Inc. boosted its holdings in Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after purchasing an additional 67 shares during the period. Finally, Strategic Advocates LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 62.1% in the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares during the period. 16.51% of the stock is currently owned by 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.