Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Jumps 1.3% – Should You Buy?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was up 1.3% during trading on Friday. The company traded as high as $421.31 and last traded at $417.7350. 9,446,152 shares were traded during trading, a decline of 28% from the average daily volume of 13,072,731 shares. The stock had previously closed at $412.35.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Moody’s upgraded TSMC’s issuer rating to Aa2 from Aa3, citing its dominant foundry position, robust balance sheet and sustained AI-related demand. The stable outlook and upgraded ratings for financing subsidiaries could lower perceived credit risk. Moody’s upgrades TSMC rating
• Positive Sentiment: TSMC reported its sixth consecutive quarter of record profit, while management raised its full-year growth outlook for the third time. Analysts at Erste Group also increased their FY2026 EPS estimate to $17.21 from $16.92 and FY2027 forecast to $22.82 from $22.26, above the current consensus for the current year. TSMC record profit and market concerns
• Positive Sentiment: Investors continue to view TSMC as a critical supplier for AI accelerators, smartphones and data centers. Its advanced-node manufacturing, packaging capabilities and broad customer base reinforce the company’s competitive position as AI infrastructure spending expands. TSMC as a global computing utility
• Positive Sentiment: TSMC confirmed discussions with SpaceX regarding its proposed Terafab facility. Any agreement could provide additional long-term capacity demand, although the company reportedly wants operational control of the fab. TSMC and SpaceX Terafab discussions
• Neutral Sentiment: TSMC’s results demonstrate powerful demand, but comparisons with ASML highlight a key constraint: AI orders exceed currently available semiconductor manufacturing equipment, fab capacity and advanced packaging. The pace and cost of expanding supply remain important investment questions. ASML versus TSMC and AI demand
• Negative Sentiment: Despite record earnings, a slight decline in gross margin unsettled some investors. The reaction reflects concerns that higher overseas expansion costs, capacity investments or product mix could pressure profitability even while revenue and AI demand remain strong. TSMC margin concerns

Analyst Upgrades and Downgrades

TSM has been the topic of a number of recent analyst reports. Needham & Company LLC boosted their price objective on Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the stock a “buy” rating in a research note on Thursday, October 15th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 target price for the company. Barclays lifted their price target on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a report on Friday, October 16th. Finally, Susquehanna lifted their price target on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $528.78.

Taiwan Semiconductor Manufacturing Stock Up 1.3%

The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The firm has a market cap of $2.17 trillion, a P/E ratio of 26.88, a P/E/G ratio of 0.85 and a beta of 1.37. The business has a fifty day moving average of $434.30 and a 200 day moving average of $420.15.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 earnings per share for the quarter. The company had revenue of $46.87 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%. On average, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid 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. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is presently 22.27%.

Insider Activity at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 350 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was bought at an average cost of $73.58 per share, with a total value of $25,753.00. Following the purchase, the vice president directly owned 2,000 shares of the company’s stock, valued at $147,160. The trade was a 21.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Bor-Zen Tien acquired 1,000 shares of the stock in a transaction dated Monday, August 3rd. The stock was acquired at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the acquisition, the vice president directly owned 14,051 shares of the company’s stock, valued at $1,026,566.06. The trade was a 7.66% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 8,043 shares of company stock worth $598,956 in the last 90 days. Company insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Fiduciary Advisors Inc. grew its holdings in shares of Taiwan Semiconductor Manufacturing by 200.0% in the 3rd quarter. Fiduciary Advisors Inc. now owns 60 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 40 shares in the last quarter. Evolution Wealth Management Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 67 shares during the last quarter. Cedar Mountain Advisors LLC raised its holdings in 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 acquiring an additional 30 shares in the last quarter. Financial Freedom LLC bought a new stake in Taiwan Semiconductor Manufacturing during the first quarter worth about $32,000. Finally, Markowski Investments bought a new stake in Taiwan Semiconductor Manufacturing during the second quarter worth about $33,000. Institutional investors and hedge funds 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 dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.