Taiwan Semiconductor Manufacturing (NYSE:TSM) Shares Down 1.8% – Here’s Why

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded down 1.8% during trading on Thursday. The stock traded as low as $407.13 and last traded at $422.15. Approximately 22,281,890 shares traded hands during trading, an increase of 70% from the average daily volume of 13,080,546 shares. The stock had previously closed at $430.00.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Record earnings and stronger guidance support the growth outlook. TSMC reported third-quarter net income of approximately NT$763.1 billion, up 68.7% year over year, while revenue and earnings exceeded expectations. The company guided for fourth-quarter revenue of $52.3 billion to $54.3 billion, well above the roughly $48.8 billion consensus estimate. TSMC posts record profit for a sixth straight quarter
• Positive Sentiment: AI and advanced-node demand remains robust. High-performance computing and artificial intelligence drove growth, with advanced technologies accounting for about 79% of wafer revenue. Momentum is also building for TSMC’s 2-nanometer process, reinforcing its leadership in cutting-edge chip manufacturing. Taiwan Semiconductor Q3 earnings and revenues top estimates
• Positive Sentiment: Analyst confidence remains high. Needham raised its price target from $530 to $560 and maintained a Buy rating, citing the company’s long-term AI growth prospects. TSMC is also reportedly discussing potential production involvement in Elon Musk’s proposed Texas “Terafab” complex, which could expand its U.S. footprint. Why TSMC’s spending plan should not deter investors

Analysts Set New Price Targets

A number of brokerages recently issued reports on TSM. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Bank of America raised their price objective on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. DA Davidson lifted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Weiss Ratings lowered shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, October 6th. Finally, Stifel Nicolaus started coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price target for the company. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $528.22.

Taiwan Semiconductor Manufacturing Stock Performance

The firm has a 50 day simple moving average of $434.77 and a 200-day simple moving average of $416.47. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market cap of $2.19 trillion, a price-to-earnings ratio of 30.46, a PEG ratio of 0.92 and a beta of 1.37.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, September 8th. The semiconductor company reported $4.62 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 $46.87 billion for the quarter. As a group, analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.60 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a $1.0854 dividend. This is a decrease from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s payout ratio is presently 24.75%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Shyue-Shyh Lin bought 1,000 shares of the stock in a transaction on Tuesday, July 21st. The stock was bought at an average price of $74.13 per share, with a total value of $74,130.00. Following the completion of the purchase, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. This represents a 3.42% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Lipen Yuan purchased 350 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The stock was bought at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the purchase, the vice president directly owned 2,000 shares in the company, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have purchased 16,043 shares of company stock worth $1,185,746. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several institutional investors have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC grew its position in Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after acquiring an additional 594,780 shares in the last quarter. Tiger Global Management LLC lifted 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 purchasing an additional 1,839,600 shares in the last quarter. Invesco Ltd. lifted its position in shares of Taiwan Semiconductor Manufacturing by 1.1% during the fourth quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock worth $1,131,025,000 after purchasing an additional 40,842 shares in the last quarter. Sei Investments Co. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 11.8% in the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after purchasing an additional 274,389 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% in the fourth 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 purchasing an additional 1,313,917 shares during the period. Institutional investors and hedge funds 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 Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.