Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 1.7% – Should You Sell?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 1.7% on Thursday . The stock traded as low as $424.05 and last traded at $428.0920. Approximately 8,318,176 shares traded hands during mid-day trading, a decline of 38% from the average daily volume of 13,431,174 shares. The stock had previously closed at $435.36.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported August 2026 consolidated revenue of NT$514.81 billion (approximately $16.35 billion), up 53.3% year over year and 10.1% from July. The record result marked a fourth consecutive monthly increase and signals continued demand from AI-chip, cloud-computing and advanced semiconductor customers. Taiwan Semiconductor’s August Revenue Rose 53% To Record High
• Positive Sentiment: Revenue growth accelerated well above the 39.3% increase recorded during the first eight months of the year, suggesting that customer orders and production volumes remain strong heading into the second half of 2026. Capacity constraints and customer backlogs could support pricing and utilization. World’s largest contract chipmaker TSMC sees August revenue surge over 53% to record high
• Positive Sentiment: TSMC and ASML are collaborating on large-format 12-inch photomasks for High-NA EUV, targeting improved fab productivity and lower chipmaking costs. TSMC plans to bring High-NA EUV into high-volume advanced-node production around 2030, supporting its long-term technology leadership. TSMC Collaborates to Expand Large-Format Photomasks for High NA EUV
• Neutral Sentiment: Erste Group raised its FY2027 EPS estimate modestly to $21.72 from $21.61, reinforcing constructive expectations but offering limited incremental impact. Recent purchases by TSMC’s CEO and other executives provide an additional confidence signal, though the transactions were relatively small.
• Negative Sentiment: TSM is trading lower alongside the broader technology and semiconductor sector. Rising wholesale inflation, Treasury yields and expectations surrounding next week’s Federal Reserve meeting are pressuring growth-stock valuations. Apple, TSMC, SpaceX, Cooper Cos., Macy’s, and More Stocks That Explain Today’s Market
• Negative Sentiment: Record TSMC sales have not revived investor enthusiasm for the AI trade; AMD and other chip stocks are also falling. Investors may be taking profits or questioning whether elevated AI spending and semiconductor valuations can persist, even as TSMC’s underlying demand remains robust. TSMC Posts Record Sales. Why AMD and Other Chip Stocks Are Falling

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on TSM shares. Barclays boosted their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Wall Street Zen downgraded Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. TD Cowen increased their target price on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Finally, Sanford C. Bernstein upped their target price on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an “outperform” rating in a research report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a 50-day moving average price of $419.15 and a 200 day moving average price of $399.70. The stock has a market capitalization of $2.22 trillion, a price-to-earnings ratio of 30.89, a PEG ratio of 1.00 and a beta of 1.39.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The company had revenue of $39.89 billion during the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is 21.43%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other news, VP Shyue-Shyh Lin acquired 2,000 shares of the business’s stock in a transaction that occurred on Sunday, July 19th. The shares were purchased at an average price of $71.71 per share, for a total transaction of $143,420.00. Following the acquisition, the vice president owned 28,269 shares of the company’s stock, valued at $2,027,169.99. This represents a 7.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The shares were acquired at an average cost of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares of the company’s stock, valued at approximately $447,000. This represents a 20.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 21,106 shares of company stock worth $1,571,733. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently bought and sold shares of TSM. Fisher Asset Management LLC increased its stake in Taiwan Semiconductor Manufacturing by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after purchasing an additional 313,773 shares during the period. Van ECK Associates Corp raised its stake in shares of Taiwan Semiconductor Manufacturing by 11.1% during 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 purchasing an additional 1,750,824 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 6.5% during the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after purchasing an additional 966,926 shares during the period. Coatue Management LLC grew its position in Taiwan Semiconductor Manufacturing by 6.9% in the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock valued at $2,622,426,000 after buying an additional 556,988 shares during the last quarter. Finally, Janus Henderson Group PLC grew its position in Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after buying an additional 594,780 shares during the last quarter. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.