Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 3.3% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) shares traded down 3.3% during mid-day trading on Monday . The company traded as low as $416.01 and last traded at $418.9440. Approximately 14,058,583 shares traded hands during mid-day trading, an increase of 5% from the average daily volume of 13,418,645 shares. The stock had previously closed at $433.24.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Revenue momentum remains strong. TSMC’s August revenue rose 53.3% year over year, reinforcing expectations that demand for advanced chips used in AI infrastructure remains robust. TSMC’s Strong August Revenues Signal Continued AI-Driven Chip Demand
• Positive Sentiment: TSMC’s 2-nanometer technology is gaining commercial validation. MediaTek launched its Dimensity 9600 Pro smartphone processor using TSMC’s newest node, with reported AI-processing improvements of 51%. The launch could help demonstrate customer demand and support future high-margin advanced-node revenue. MediaTek launches new mobile chip using TSMC’s most advanced technology
• Positive Sentiment: Analyst and technical coverage remains constructive. TSM is described as being in or near a potential buy zone and as a wide-moat company benefiting from durable demand, manufacturing scale and leadership in advanced chips. Dow Jones Tech Titan Apple, Nvidia Chipmaker TSMC, AMD, Bloom Energy In Or Near Buy Zones
• Neutral Sentiment: Investors are comparing TSMC with ASML as AI “picks-and-shovels” plays. The comparison highlights TSMC’s role as the critical contract manufacturer for many competing chip designers, but argues that ASML may offer more supplier neutrality. This could limit enthusiasm for TSM relative to its equipment-industry counterpart despite strong fundamentals. Taiwan Semiconductor Vs. ASML: There’s Actually One True Dominant Picks-and-Shovels Play
• Negative Sentiment: Near-term concerns center on execution and timing. Media coverage notes that the financial payoff from 2nm depends on achieving meaningful manufacturing volume, while TSMC’s 2028 process roadmap appears to advance ahead of broader high-NA lithography adoption. Investors may therefore be questioning the pace and cost of the next technology transition. TSMC Slips as 2-Nanometer Chip Powers a 51% AI Leap

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on TSM. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target for the company. DA Davidson increased their price objective on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, July 17th. TD Cowen upped their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Finally, Bank of America lifted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $523.22.

Taiwan Semiconductor Manufacturing Stock Down 0.9%

The firm’s 50 day moving average is $417.97 and its 200-day moving average is $400.97. The firm has a market cap of $2.15 trillion, a PE ratio of 29.88, a P/E/G ratio of 0.93 and a beta of 1.39. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. The firm had revenue of $39.89 billion during the quarter. As a group, equities research analysts expect that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.55 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced 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 yield of 1.0%. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 21.43%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, SVP Shu-Hua Fang purchased 2,000 shares of the stock in a transaction on Thursday, July 2nd. The stock was bought at an average price of $77.09 per share, for a total transaction of $154,180.00. Following the acquisition, the senior vice president directly owned 8,206 shares of the company’s stock, valued at $632,600.54. This represents a 32.23% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, VP Shyue-Shyh Lin acquired 1,000 shares of the business’s stock in a transaction dated Tuesday, July 21st. The shares were bought at an average price of $74.13 per share, for a total transaction of $74,130.00. Following the completion of the acquisition, the vice president owned 30,269 shares in the company, valued at approximately $2,243,840.97. This trade represents a 3.42% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 20,106 shares of company stock valued at $1,496,473 in the last quarter. Corporate insiders own 1.11% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Tiger Global Management LLC grew its position in shares of 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 in the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. boosted its stake 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 valued at $636,077,000 after acquiring an additional 1,313,917 shares during the last quarter. Capital Research Global Investors increased its position in shares of Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock worth $976,821,000 after purchasing an additional 1,281,648 shares during the last quarter. Finally, Corient Private Wealth LLC raised its stake in shares of Taiwan Semiconductor Manufacturing by 330.0% in the 4th quarter. Corient Private Wealth LLC now owns 1,583,175 shares of the semiconductor company’s stock valued at $481,111,000 after purchasing an additional 1,215,035 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.