Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Up 3.4% After Dividend Announcement

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) traded up 3.4% during trading on Wednesday following a dividend announcement from the company. The stock traded as high as $379.58 and last traded at $374.2470. 18,585,526 shares traded hands during mid-day trading, an increase of 21% from the average session volume of 15,299,913 shares. The stock had previously closed at $361.91.

The newly announced dividend which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be issued a dividend of $0.9503 per share. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 23.57%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 2nd. UBS Group set a $330.00 target price on Taiwan Semiconductor Manufacturing in a report on Sunday, December 7th. The Goldman Sachs Group restated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, January 5th. Wedbush reaffirmed an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday. Finally, Needham & Company LLC increased their price target on shares of Taiwan Semiconductor Manufacturing from $360.00 to $410.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Three research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $381.67.

Taiwan Semiconductor Manufacturing Trading Up 3.4%

The company has a fifty day simple moving average of $318.83 and a two-hundred day simple moving average of $287.00. The company has a market capitalization of $1.94 trillion, a P/E ratio of 35.14, a price-to-earnings-growth ratio of 1.01 and a beta of 1.31. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.69 and a quick ratio of 2.47.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last issued its quarterly earnings data on Friday, November 14th. The semiconductor company reported $14.32 earnings per share for the quarter. The business had revenue of $32.50 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.18% and a net margin of 45.13%. On average, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: January revenue surged to NT$401.26 billion (+~37% YoY), the highest monthly sales in TSMC history — direct evidence of sustained AI demand that underpins near-term revenue and pricing power. TSMC Stock Hits Record High as Demand for AI Chips Drives Growth
• Positive Sentiment: Analyst support and momentum: Wedbush reiterated an Outperform rating after the strong sales update, and coverage noting the sales beat has helped push the stock to 52‑week/record highs. Taiwan Semiconductor Stock Hits 52-Week High: What’s Happening Today?
• Positive Sentiment: Board and capital plans: the board backed large 2026 capex, dividend and bonus measures after strong 2025 results — signaling continued investment to scale AI capacity and a willingness to return cash to shareholders. TSMC Board Backs Massive 2026 Capex, Dividend and Bonus Payouts After Strong 2025 Results
• Positive Sentiment: Market dominance: commentary highlights TSMC’s commanding foundry share (roughly 71% overall, >90% at advanced nodes), reinforcing the company’s pricing power and long-term moat in AI chips. Taiwan Semiconductor’s January Sales Show the AI Tsunami Is Still Growing
• Neutral Sentiment: Dividend announced: TSMC declared a quarterly dividend of 0.9503 per share (annualized yield ~1.0%), ex-dividend June 11 and payable July 9 — modest yield but a sign of cash return policy.
• Neutral Sentiment: TSMC Global capital move: the company’s subsidiary cleared a path for up to US$30 billion capital increase — provides funding flexibility for overseas fabs but may have financing/dilution implications. TSMC Subsidiary TSMC Global Clears Path for Capital Increase of Up to US$30 Billion
• Negative Sentiment: Valuation risk: several pieces note TSMC’s stock is at/near record highs and advise reassessing valuation after the sharp rally — investors should watch P/E, forward earnings assumptions and potential for mean reversion. Assessing Taiwan Semiconductor Manufacturing’s Valuation After Strong Recent Share Price Gains

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TSM. Jennison Associates LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 26.7% during the 2nd quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company’s stock worth $2,728,478,000 after purchasing an additional 2,537,760 shares during the last quarter. Brown Advisory Inc. increased its position in Taiwan Semiconductor Manufacturing by 43.2% in the 2nd quarter. Brown Advisory Inc. now owns 6,650,983 shares of the semiconductor company’s stock worth $1,506,389,000 after buying an additional 2,006,745 shares during the period. Arrowstreet Capital Limited Partnership increased its position in Taiwan Semiconductor Manufacturing by 109.5% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,526,160 shares of the semiconductor company’s stock worth $798,640,000 after buying an additional 1,842,951 shares during the period. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 268.2% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,499,677 shares of the semiconductor company’s stock worth $566,152,000 after buying an additional 1,820,852 shares during the last quarter. Finally, Life Cycle Investment Partners Ltd bought a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $495,163,000. Institutional investors own 16.51% of the company’s stock.

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.