DA Davidson Rates Taiwan Semiconductor Manufacturing (TSM) Buy

DA Davidson reaffirms its Buy rating and $500 price target for TSMC on October 16, 2026, a 21.21% upside from the current price.

By TradeTexts Research Desk · Published Oct 16, 2026, 1:53 PM EDT · Updated Oct 17, 2026, 2:15 PM EDT

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DA Davidson rated Taiwan Semiconductor Manufacturing Company Limited ($TSM) "Buy" with a $500 price target on October 16, 2026.

TSM Taiwan Semiconductor Manufacturing Company Limited

$412.61 +30.11% year to date

Daily close · Oct 16, 2026

Key Points

DA Davidson reiterated its Buy rating on Taiwan Semiconductor (TSM), maintaining a price target of $500 on October 16, 2026.
DA Davidson's $500 price target implies 21.21% upside from Taiwan Semiconductor Manufacturing Company Limited's ($TSM) current $412.51 share price.
Recently, TSMC shares traded around $412.50, which is 17.5% below the analyst's target price.
The consensus among analysts suggests a strong buy recommendation with a mean price target of approximately $584.39.

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DA Davidson has reiterated its Buy rating on Taiwan Semiconductor Manufacturing Company Limited (TSM) with a price target of $500. This decision was made on October 16, 2026. The stock was recently trading around $412.50.

Analyst rating track record

DA Davidson vs. the S&P 500

YTD return -4.48% hypothetical

All-time return -4.48% S&P 500 +1.84%

vs. S&P 500 -6.32% behind the index

Hypothetical returns from DA Davidson's disclosed trades, not real profit or advice. How we model this.

Other Institutional Activity in TSM

FMR, LLC reduced its stake by 1,455,472 shares, leaving it with 58,937,551 shares valued at about $24.3 billion. Capital World Investors added 1,486,440 shares, bringing its total to 34,372,274 shares worth around $14.2 billion. Sanders Capital, LLC decreased its holdings by 1,910,882 shares, now holding 26,149,064 shares valued at about $10.8 billion. JPMorgan Chase & Co. slightly trimmed its position, selling 155,904 shares to hold 23,829,286 shares worth about $9.8 billion. Blackrock Inc. increased its stake by 1,888,086 shares, totaling 20,112,852 shares valued at approximately $8.3 billion.

Taiwan Semiconductor Manufacturing Company Limited Stock Down 4.1%

As of October 16, 2026, TSM shares traded below their 50-day moving average by about 5.1% and were below the 52-week high of $487.47 by 15.4%. The stock is also 29.4% below the mean analyst price target of $584.39.

12-month forecast

$TSM price target

Taiwan Semiconductor Manufacturing Company Limited daily closes and this analyst's $500 target. Not advice.

Recent Earnings

In its most recent earnings report, TSMC reported a trailing twelve-month revenue of approximately $4.44 trillion and an EPS of $15.43. The company has shown a strong revenue growth of 36.0% year-over-year, with a net margin of 49.9%.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing Company Limited

Bor-Zen Tien, an officer at TSMC, purchased a total of 62 shares in multiple transactions earlier this year. On April 28, 2026, Tien bought 20 shares valued at $7,760. On May 20, 2026, he acquired 17 shares worth $6,718. Later, on July 20, 2026, he bought 10 shares at an average price of $405, totaling $4,050, and on July 28, 2026, he purchased 15 shares for $5,850.

Analysts Set New Price Targets

On October 6, 2026, Barclays maintained its Overweight rating on TSMC, moving its price target from $650 to $665. On the same day, DA Davidson reiterated its Buy rating with a price target of $500. Earlier, on October 15, 2026, Needham maintained its Buy rating, increasing its target from $530 to $560. The consensus rating for TSM is a strong buy, with a mean price target of approximately $584.39 based on 20 analyst opinions.

About TSMC

Taiwan Semiconductor Manufacturing Company Limited is a leading semiconductor manufacturer that produces integrated circuits and other semiconductor devices. The company operates internationally, providing various fabrication processes for different types of chips. Its strong market position and robust earnings growth make it a key player in the technology sector.

Bottom Line

Investors should keep an eye on TSMC's upcoming earnings report and any further analyst updates. With a strong buy consensus and a significant gap to the analyst price targets, TSMC remains a focus in the semiconductor industry.