Stock Traders Buy High Volume of Taiwan Semiconductor Manufacturing Call Options (NYSE:TSM)

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) was the target of some unusual options trading on Tuesday. Traders acquired 212,745 call options on the stock. This is an increase of 33% compared to the average daily volume of 159,420 call options.

Wall Street Analyst Weigh In

TSM has been the subject of a number of research reports. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, January 9th. Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, March 16th. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a “strong-buy” rating in a research report on Thursday, January 15th. Wedbush reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Finally, Needham & Company LLC raised their price objective 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. Three analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $391.43.

Insider Activity

In other news, VP Bor-Zen Tien purchased 1,000 shares of the company’s stock in a transaction that occurred on Sunday, March 22nd. The shares were purchased at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the purchase, the vice president directly owned 9,051 shares of the company’s stock, valued at $506,222.43. This represents a 12.42% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.11% of the stock is currently owned by company insiders.

Institutional Trading of Taiwan Semiconductor Manufacturing

Several hedge funds have recently made changes to their positions in TSM. Fisher Asset Management LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 1.8% in the 4th quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock worth $5,514,662,000 after acquiring an additional 313,773 shares during the period. Van ECK Associates Corp raised its holdings in Taiwan Semiconductor Manufacturing by 11.1% during the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company’s stock worth $5,307,428,000 after purchasing an additional 1,750,824 shares during the last quarter. Bank of America Corp DE boosted its position in Taiwan Semiconductor Manufacturing by 6.5% during the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after purchasing an additional 966,926 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in Taiwan Semiconductor Manufacturing by 3.6% during the third quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company’s stock worth $4,401,448,000 after purchasing an additional 541,047 shares in the last quarter. Finally, Jennison Associates LLC grew its holdings in Taiwan Semiconductor Manufacturing by 6.4% in the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company’s stock valued at $4,070,393,000 after purchasing an additional 802,757 shares during the last quarter. Institutional investors and hedge funds own 16.51% of the company’s stock.

Trending Headlines about Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Japan approves TSMC’s plan to build a large 3nm “AI chip” factory — a $5.26B investment that brings advanced-node capacity to Japan, diversifies the AI supply chain away from Taiwan and reduces geopolitical concentration risk, supporting long-term revenue and strategic customer wins. Taiwan Semiconductor Wins Approval For Ultra-Efficient AI Chip Mega-Factory In Japan
• Positive Sentiment: TSMC has started production/ramp of next‑gen 2nm chips amid record AI demand — a development analysts say reframes growth and valuation expectations as AI and data‑center orders increase. This supports higher long‑term revenue and margin outlooks. TSMC 2nm Ramp And AI Demand Reframe Growth And Valuation Narrative
• Positive Sentiment: Unusually large call-option activity — investors bought ~212,745 calls (≈33% above average) — signals short‑term bullish positioning and elevated probability of upside/volatility in the near term. (Market options data)
• Positive Sentiment: Big push into advanced packaging — analysts highlight packaging as a new growth and margin lever that could deepen customer relationships for AI chips and increase wafer‑plus‑services revenue. Will TSM’s Advanced Packaging Push Unlock a New Growth Phase?
• Positive Sentiment: Insider purchases and strong margin reports — recent VP buys and commentary about record gross margins and NVIDIA becoming the top customer are read as confidence signals from insiders and confirm pricing power. TSMC Stock (TSM) Opinions on Capacity Constraints
• Positive Sentiment: Brand/innovation recognition — TSMC appears on Fast Company’s list of most innovative companies, a reputational plus that underscores technology leadership (minor direct impact but supportive of investor sentiment). ELEHEAR Named to Fast Company’s Annual List of the World’s Most Innovative Companies of 2026
• Neutral Sentiment: Capacity constraints are intensifying — social and analyst commentary points to tight advanced-node supply. That supports pricing and margins but raises short‑term fulfillment risks and high capex needs. TSMC Stock (TSM) Opinions on Capacity Constraints
• Neutral Sentiment: Quarterly fund letters highlight strong underlying demand and TSMC’s role in portfolios — supportive context but largely reiterative of stronger operational themes. TSM Gains from Strong Demand and Its Industry-Leading Manufacturing Capabilities
• Negative Sentiment: Short‑term pullback noted — recent market coverage flagged that TSMC fell more sharply than the broader market in a prior session, indicating increased near‑term volatility and profit‑taking pressure despite the positive fundamental news flow. TSMC (TSM) Falls More Steeply Than Broader Market

Taiwan Semiconductor Manufacturing Stock Up 6.8%

Taiwan Semiconductor Manufacturing stock opened at $337.90 on Wednesday. The stock has a 50 day moving average of $348.54 and a two-hundred day moving average of $314.32. Taiwan Semiconductor Manufacturing has a twelve month low of $134.25 and a twelve month high of $390.20. The stock has a market capitalization of $1.75 trillion, a price-to-earnings ratio of 31.73, a PEG ratio of 0.87 and a beta of 1.29. The company has a current ratio of 2.62, a quick ratio of 2.42 and a debt-to-equity ratio of 0.17.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its earnings results on Thursday, February 26th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 34.89% and a net margin of 45.13%.The business had revenue of $30.65 billion for the quarter. As a group, research analysts expect that Taiwan Semiconductor Manufacturing will post 9.2 earnings per share for the current year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be paid a $0.9503 dividend. This represents a $3.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, June 11th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 28.36%.

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.