TLDR
- TSM dropped 5.5% on March 3, 2026, driven by broad market risk-off sentiment rather than company-specific news.
- Geopolitical tensions around U.S.-Iran developments rattled equity markets, hitting chip and AI-linked stocks hard.
- Several major institutional investors, including FMR LLC and Goldman Sachs, trimmed their TSM positions in Q4 2025.
- Analyst consensus remains “Buy” with a median price target of $405, and the stock has a market cap of $1.91 trillion.
- TSMC’s next company update is its February 2026 monthly sales release, scheduled for March 10, 2026.
Taiwan Semiconductor Manufacturing (TSM) slid 5.5% on Tuesday, March 3, 2026, pulling back from a strong late-February run that had pushed the stock near record territory.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The move appears to be driven by macro forces rather than anything TSMC-specific. Geopolitical tensions around escalating U.S.-Iran conflict developments have pushed investors toward defensive positioning across the board.
Chip and AI-adjacent stocks have been particularly exposed. After a strong run built on elevated expectations, this corner of the market has been prone to sharp pullbacks even without fresh negative catalysts.
U.S. equity futures were choppy throughout the session, with energy prices and rates also moving sharply — a classic risk-off backdrop.
TSM opened Tuesday at $368.94. Its 50-day moving average sits at $338.91 and its 200-day at $299.33, meaning even after today’s drop, the stock remains well above both levels.
The 12-month range spans from a low of $134.25 to a high of $390.20. TSMC carries a market cap of $1.91 trillion, a P/E ratio of 34.64, and a debt-to-equity ratio of just 0.17.
The company reported Q4 earnings on February 26, posting EPS of $3.11 on revenue of $30.65 billion. Return on equity came in at 34.89% with a net margin of 45.13%.
There is no new company disclosure today driving the move. The next scheduled update from TSMC is its February 2026 monthly sales release, due March 10, 2026.
Institutional Selling in Q4 2025
Some notable institutional repositioning happened heading into this period. FMR LLC cut its position by 16.5%, offloading over 12 million shares worth an estimated $3.66 billion in Q4 2025.
Massachusetts Financial Services removed 35.6% of its holding, while Goldman Sachs Group trimmed 30.2% of its position. Macquarie Group exited entirely, selling 100% of its stake.
Not everyone was heading for the exit. Point72 Asset Management increased its position by 157.1%, adding over 2.85 million shares worth an estimated $866 million.
Glynn Capital Management cut its TSM holdings by 27.6% in Q3 2025, though the stock still made up 7.6% of its total portfolio — its second-largest holding.
Analyst Ratings Stay Positive
Wall Street hasn’t flinched on its outlook. The consensus rating is “Buy” with a consensus price target of $391.43.
DA Davidson’s Gil Luria set a $450 target on February 13, 2026 — the most recent analyst call on record. Barclays also carries a $450 target with an “Overweight” rating.
At the lower end, Bernstein has a $330 target and TD Cowen set $370 with a “Hold” rating.
Congress has traded TSM 12 times in the past six months — seven purchases and five sales — across several representatives including Cleo Fields and Jared Moskowitz on the buy side.
TSMC also announced a quarterly dividend of $0.9503, payable July 9, 2026, to investors of record as of June 11. That represents an annualized dividend of $3.80 and a yield of around 1.0%.
Analysts project full-year EPS of $9.20 for the current fiscal year.
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