Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 11% – Should You Sell?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price dropped 11% during trading on Thursday. The company traded as low as $351.19 and last traded at $352.1940. 41,794,794 shares were traded during trading, an increase of 218% from the average session volume of 13,140,400 shares. The stock had previously closed at $395.75.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Bernstein raised its price target on TSM to $600 and reiterated an “outperform” rating, signaling confidence in the stock’s longer-term prospects. Article: Bernstein raises TSM price target
• Positive Sentiment: TSMC’s AI opportunity remains a key support: it manufactures advanced chips for multiple leading chip designers, and recent coverage notes AI demand is outpacing supply. The company also recently recorded another quarterly earnings beat. Article: TSMC’s expanding AI opportunity
• Positive Sentiment: ETFs bought $146.2 million of TSM shares on Nov. 3, a supportive institutional-flow signal. Article: ETF buying in TSM
• Neutral Sentiment: TSMC plans to list $450 million in green bonds in Taiwan. The financing may support environmental projects, but the report does not indicate a material near-term change to earnings. Article: TSMC green-bond listing
• Negative Sentiment: A broad semiconductor sell-off is weighing on TSM alongside concerns about AI spending, lofty growth expectations and valuations. Despite strong industry sales data, investors are focused on whether demand can sustain expectations into 2027. Article: Semiconductor sell-off and AI expectations
• Negative Sentiment: Investors are also watching TSMC’s next monthly sales release on Nov. 10; the report frames the upcoming figures against a high quarterly revenue benchmark, raising expectations for continued growth. Article: TSMC sales data and quarterly benchmark

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. Barclays raised their price target on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an “overweight” rating in a research note on Friday, October 16th. Susquehanna increased 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 note on Thursday, July 16th. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Finally, Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 8th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $533.89.

Taiwan Semiconductor Manufacturing Trading Down 11.0%

The company has a market capitalization of $1.83 trillion, a P/E ratio of 22.66, a PEG ratio of 0.82 and a beta of 1.44. The business has a fifty day moving average of $434.04 and a 200-day moving average of $400.48. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.45 by $0.15. The business had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. Taiwan Semiconductor Manufacturing’s revenue was up 41.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.92 earnings per share. Analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.07 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Thursday, December 10th. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 22.07%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 1,000 shares of the business’s stock in a transaction on 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 purchase, the vice president owned 6,000 shares in the company, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have purchased a total of 7,043 shares of company stock valued at $529,416 in the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TSM. Brookstone Capital Management increased its stake in Taiwan Semiconductor Manufacturing by 87.3% during the 2nd quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company’s stock worth $12,008,000 after buying an additional 11,719 shares in the last quarter. Opal Capital LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 72.5% in the first quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company’s stock valued at $9,384,000 after acquiring an additional 11,666 shares in the last quarter. Western Wealth Management LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 27.4% in the first quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company’s stock valued at $9,447,000 after acquiring an additional 6,013 shares in the last quarter. MRA Advisory Group purchased a new position in shares of Taiwan Semiconductor Manufacturing in the third quarter valued at approximately $704,000. Finally, Cantor Fitzgerald Investment Advisors L.P. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter worth approximately $6,129,000. 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 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.