Key Points
- Insider buy: CEO Che‑Chia Wei purchased 186 shares on April 9 at an average price of $57.87 (total $10,763.82), raising his direct stake to 17,379 shares (a 1.08% increase) as disclosed in an SEC Form 4 filing.
- TSMC is riding surging AI demand
- The company has a market cap of about $1.91 trillion, a P/E of 34.7, pays a quarterly dividend of $0.9503 (1.0% yield), and holds a consensus Wall Street rating of "Buy" with a $391.43 target.
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) CEO Che-Chia Wei bought 186 shares of the company's stock in a transaction that occurred on Thursday, April 9th. The stock was acquired at an average price of $57.87 per share, for a total transaction of $10,763.82. Following the completion of the acquisition, the chief executive officer directly owned 17,379 shares in the company, valued at approximately $1,005,722.73. This represents a 1.08% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.
Taiwan Semiconductor Manufacturing Stock Performance
Taiwan Semiconductor Manufacturing stock opened at $369.60 on Tuesday. The firm's 50 day simple moving average is $351.80 and its 200-day simple moving average is $319.56. The company has a market cap of $1.91 trillion, a P/E ratio of 34.70, a price-to-earnings-growth ratio of 1.01 and a beta of 1.35. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.62 and a quick ratio of 2.42. Taiwan Semiconductor Manufacturing Company Ltd. has a fifty-two week low of $145.84 and a fifty-two week high of $390.20.
Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. The business had revenue of $30.65 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 45.13% and a return on equity of 34.89%. As a group, equities research analysts predict that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 EPS for the current year.
Taiwan Semiconductor Manufacturing Cuts Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 11th will be given a $0.9503 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 28.17%.
Taiwan Semiconductor Manufacturing News Summary
Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:
- Positive Sentiment: Surging AI demand and strong guidance: TSMC is guiding Q1 revenue of $34.6–$35.8B (nearly 40% YoY) and analysts expect continued record profits driven by AI/data-center chips — a primary bullish driver for sales and multiple expansion. Taiwan Semiconductor Q1: Middle East War Consequences And The Zero-Availability Crisis
- Positive Sentiment: Record-profit expectations: Multiple outlets report TSMC is likely to post a fourth straight quarter of record profit and large YoY net-profit gains as AI chip demand lifts revenue and pricing power. This frames expectations for an earnings beat. TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
- Positive Sentiment: Technology/roadmap upside: Advanced nodes now make up a large portion of wafer revenue and TSMC has 2nm in mass production, supporting long-term premium margins and market share in AI chips. Taiwan Semiconductor Q1: Middle East War Consequences And The Zero-Availability Crisis
- Positive Sentiment: Insider buy: CEO Che-Chia Wei made a small open-market purchase, a near-term positive governance/confidence signal for investors. SEC Form 4 disclosure
- Neutral Sentiment: Consensus/expectations set to favor a beat: Multiple previews and analyst notes (Zacks, Yahoo, Motley Fool) expect TSMC to beat Q1 estimates, which raises the bar for a strong beat and increases post-earnings volatility. 3 Quarterly Reports to Watch This Week: NFLX, PEP, TSM
- Neutral Sentiment: ETF and index flow focus: Coverage highlights ETFs and funds as a lever for near-term inflows/outflows tied to TSMC’s earnings reaction, which can amplify moves but is not a fundamental change. ETFs to Play Taiwan Semiconductor's Upbeat Results on AI Boom
- Negative Sentiment: Rising costs from overseas expansion: Several previews warn that capex and higher operating costs for overseas fabs could pressure margins even as revenue rises — a key earnings risk. TSM Likely to Beat Q1 Earnings Estimates: How to Play the Stock?
- Negative Sentiment: Geopolitical and supply risks: Middle East tensions and broader “zero-availability” supply constraints are flagged as potential disruptors to the supply chain and market sentiment, which can trigger short-term selloffs. Taiwan Semiconductor Q1: Middle East War Consequences And The Zero-Availability Crisis
- Negative Sentiment: Potential for elevated volatility: With high expectations priced in (near all-time highs, strong momentum), any miss or conservative guidance could amplify downside given stretched multiples. TSMC Q1 Earnings Preview: What to Expect From Upcoming Report
Institutional Trading of Taiwan Semiconductor Manufacturing
Institutional investors have recently added to or reduced their stakes in the business. Quattro Advisors LLC acquired a new stake 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 in the fourth quarter valued at approximately $27,000. Stephens Consulting LLC lifted its stake in Taiwan Semiconductor Manufacturing by 82.0% in the fourth quarter. Stephens Consulting LLC now owns 91 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 41 shares during the last quarter. Strategic Advocates LLC lifted its stake in Taiwan Semiconductor Manufacturing by 62.1% in the fourth 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 acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $29,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
Several research analysts have recently weighed in on the stock. Needham & Company LLC lifted their target price on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the stock a "buy" rating in a research report on Thursday, January 15th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, March 22nd. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, January 9th. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Three investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $391.43.
Read Our Latest Stock Report on Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company Profile
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Get Free Report)
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.
Further Reading
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