Taiwan Semiconductor Manufacturing (NYSE:TSM) Upgraded by Zacks Research to “Strong-Buy” Rating

Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) from a hold rating to a strong-buy rating in a research report report published on Thursday,Zacks.com reports.

Several other analysts have also recently commented on the company. Citigroup restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Weiss Ratings cut Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “buy” rating to a “strong-buy” rating in a research report on Saturday. TD Cowen upped their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research report on Friday. Finally, Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Taiwan Semiconductor Manufacturing has an average rating of “Buy” and an average target price of $490.00.

Taiwan Semiconductor Manufacturing Stock Down 3.0%

Shares of TSM opened at $397.59 on Thursday. The company has a market capitalization of $2.06 trillion, a P/E ratio of 28.69, a PEG ratio of 1.02 and a beta of 1.36. Taiwan Semiconductor Manufacturing has a one year low of $223.70 and a one year high of $479.00. The business’s 50 day simple moving average is $426.79 and its 200-day simple moving average is $377.94. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released 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 firm had revenue of $39.89 billion during the quarter. As a group, sell-side analysts predict that Taiwan Semiconductor Manufacturing will post 15.51 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $4.45 annualized dividend and a yield of 1.1%. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. Taiwan Semiconductor Manufacturing’s dividend payout ratio (DPR) is currently 24.71%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien bought 2,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was bought at an average cost of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. This represents a 22.10% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Lipen Yuan bought 1,000 shares of the stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the purchase, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This trade represents a 25.00% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 6,857 shares of company stock worth $512,334. Insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Quattro Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $25,000. Hilton Head Capital Partners LLC acquired a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth $27,000. Stephens Consulting LLC grew its holdings in Taiwan Semiconductor Manufacturing by 82.0% during the 4th quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 41 shares during the period. Strategic Advocates LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 62.1% during the 4th quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after acquiring an additional 36 shares during the last quarter. Finally, Ares Financial Consulting LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at $29,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

Taiwan Semiconductor Manufacturing Company Profile

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.