Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 2.1% – Here’s Why

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) fell 2.1% during mid-day trading on Monday . The stock traded as low as $405.15 and last traded at $410.1140. 10,618,634 shares changed hands during trading, a decline of 23% from the average session volume of 13,773,432 shares. The stock had previously closed at $418.95.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is reportedly building capacity for aggressive demand forecasts ahead of Nvidia’s earnings report. Because Nvidia is a major customer, evidence of a strong order book or higher pricing could reinforce expectations for robust future growth. TSMC Jumps Before Nvidia Tests Its Capacity Bet
• Positive Sentiment: Analysts remain constructive, with the average price target implying approximately 25% potential upside. Continued upward earnings-estimate revisions provide a more meaningful bullish signal than the target-price measure alone. How Much Upside Is Left in TSMC
• Positive Sentiment: AI demand, adoption of advanced nodes and global capacity expansion are supporting expectations for strong revenue and earnings momentum. TSM Rides on AI, Advanced Nodes and Capacity Expansion
• Positive Sentiment: TSMC is expected to manufacture Xiaomi’s new Xring O3 smartphone processor using its 3-nanometre technology, adding another advanced-chip customer and potentially broadening demand beyond AI accelerators. Xiaomi Xring O3 report
• Neutral Sentiment: TSMC disclosed July bond-issuance and governance updates. The financing supports expansion but also highlights the capital required to build global capacity. TSMC Bond Issuance and Governance Updates
• Negative Sentiment: Semiconductor shares recently sold off as investors took profits and reduced risk ahead of Nvidia’s report, underscoring the risk that elevated expectations could trigger volatility if results or guidance disappoint. TSMC Slides as AI-Chip Confidence Cracks

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Monday, July 6th. Susquehanna boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a report on Thursday, July 16th. DA Davidson lifted their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Finally, Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 12th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average price target of $524.25.

Taiwan Semiconductor Manufacturing Price Performance

The company has a 50 day moving average of $424.88 and a 200 day moving average of $394.77. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The stock has a market capitalization of $2.16 trillion, a price-to-earnings ratio of 30.12, a PEG ratio of 0.94 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.44 EPS for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average cost of $74.50 per share, with a total value of $74,500.00. Following the completion of the acquisition, the vice president directly owned 6,000 shares of the company’s stock, valued at $447,000. This trade represents a 20.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Shyue-Shyh Lin acquired 2,000 shares of the business’s stock in a transaction on Sunday, July 19th. The shares were bought at an average cost 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 position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders bought 17,662 shares of company stock worth $1,307,491. Corporate insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds have recently made changes to their positions in TSM. Tiger Global Management LLC increased its position in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after buying an additional 1,839,600 shares during the period. Van ECK Associates Corp raised its position in Taiwan Semiconductor Manufacturing by 11.1% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth $495,163,000. T. Rowe Price Investment Management Inc. grew its position in Taiwan Semiconductor Manufacturing by 168.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after purchasing an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP acquired a new position in Taiwan Semiconductor Manufacturing in the third quarter valued at $360,443,000. Hedge funds and other institutional investors 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.