Taiwan Semiconductor Manufacturing (NYSE:TSM) Trading 2.4% Higher – Here’s What Happened

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM)’s share price shot up 2.4% during trading on Wednesday . The company traded as high as $430.55 and last traded at $422.3450. 14,511,174 shares traded hands during mid-day trading, an increase of 5% from the average session volume of 13,874,326 shares. The stock had previously closed at $412.32.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Nvidia’s Jensen Huang is reportedly working to deepen the AI chip alliance with TSMC and SK Hynix, underscoring TSMC’s central role in the AI supply chain and signaling potential for more strategic business tied to AI infrastructure. Article Title
• Positive Sentiment: TSMC is ramping 3nm production in Taiwan, Arizona, and Japan to meet surging AI chip demand, which suggests strong utilization and continued revenue growth from advanced manufacturing. Article Title
• Positive Sentiment: TSMC announced a 30% increase in employee profit sharing after posting record quarterly profit, reinforcing the message that business is very strong and AI demand is still outpacing supply. Article Title
• Positive Sentiment: Reports that TSMC plans to raise chip prices amid tight AI-related supply further support margin expansion and pricing power for the company. Article Title
• Positive Sentiment: TSMC also reported a dividend adjustment and a 17% dividend increase, which is favorable for income-focused investors and reflects confidence in cash generation. Article Title
• Neutral Sentiment: Multiple reports highlighted TSMC’s role in helping Taiwan overtake India as the world’s fifth-largest stock market, but these articles mostly reflect broader market enthusiasm rather than a direct new operating update for TSMC. Article Title
• Negative Sentiment: One overhang is insider selling, with a TSMC executive reportedly dumping nearly $14 million in shares, which can weigh on sentiment even if it does not change the business outlook. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on TSM. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 20th. Zacks Research lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Needham & Company LLC boosted their price target on Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a report on Thursday, April 16th. DA Davidson restated a “buy” rating and issued a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Finally, Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of “Buy” and a consensus target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Up 2.4%

The firm has a market cap of $2.19 trillion, a P/E ratio of 35.14, a price-to-earnings-growth ratio of 1.18 and a beta of 1.39. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a fifty day moving average of $373.43 and a 200-day moving average of $340.12.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The business had revenue of $30.65 billion for the quarter. On average, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 15.28 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors 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 is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 24.96%.

Insider Activity

In related news, VP Tzu-Sou Chuang sold 200,000 shares of the company’s stock in a transaction dated 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 in the company, valued at approximately $174,237,371.95. This represents a 7.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Bor-Zen Tien bought 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average price of $69.91 per share, for a total transaction of $139,820.00. Following the acquisition, the vice president directly owned 11,051 shares of the company’s stock, valued at $772,575.41. This represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 3,346 shares of company stock worth $218,005 in the last quarter. 1.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently bought and sold shares of the business. Twin City Private Wealth LLC increased its position in Taiwan Semiconductor Manufacturing by 0.3% during the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after buying an additional 25 shares during the last quarter. Financial Life Planners increased its position in Taiwan Semiconductor Manufacturing by 3.4% during the first quarter. Financial Life Planners now owns 786 shares of the semiconductor company’s stock worth $266,000 after buying an additional 26 shares during the last quarter. Corus Family Wealth Advisors increased its position in Taiwan Semiconductor Manufacturing by 1.1% during the first quarter. Corus Family Wealth Advisors now owns 2,401 shares of the semiconductor company’s stock worth $811,000 after buying an additional 26 shares during the last quarter. Lodestar Private Asset Management LLC increased its position in Taiwan Semiconductor Manufacturing by 0.9% during the first quarter. Lodestar Private Asset Management LLC now owns 2,896 shares of the semiconductor company’s stock worth $979,000 after buying an additional 27 shares during the last quarter. Finally, Mitchell Sinkler & Starr PA increased its position in Taiwan Semiconductor Manufacturing by 1.9% during the fourth quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company’s stock worth $450,000 after buying an additional 28 shares during the last quarter. Institutional investors and hedge funds 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.