Disclosed in the latest SEC filing, a significant insider purchase on May 19, involves BorZen Tien, VP at Taiwan Semiconductor (NYSE:TSM).
What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that Tien bought 2,000 shares of Taiwan Semiconductor, amounting to a total of $139,810.
Taiwan Semiconductor shares are trading down 2.15% at $387.45 at the time of this writing on Tuesday morning.
<h3>Delving into Taiwan Semiconductor's Background</h3>
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious base of customers, including Apple, AMD, and Nvidia, that look to apply its cutting-edge process technologies to their semiconductor designs. TSMC employs more than 83,000 people.
<h3>Financial Milestones: Taiwan Semiconductor's Journey</h3>
Revenue Growth: Over the 3 months period, Taiwan Semiconductor showcased positive performance, achieving a revenue growth rate of 35.13% as of 31 March, 2026. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Insights into Profitability:
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Gross Margin: The company excels with a remarkable gross margin of 66.25%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Taiwan Semiconductor's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 110.4.
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Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.16.
Valuation Overview:
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Price to Earnings (P/E) Ratio: Taiwan Semiconductor's P/E ratio of 34.02 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The current P/S ratio of 15.82 is above industry norms, reflecting an elevated valuation for Taiwan Semiconductor's stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Taiwan Semiconductor's EV/EBITDA ratio at 18.59 suggests potential undervaluation, falling below industry averages.
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Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
<h3>The Relevance of Insider Transactions</h3>
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
When discussing legal matters, the term &#34;insider&#34; refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>A Deep Dive into Insider Transaction Codes</h3>
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Taiwan Semiconductor's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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BorZen Tien, VP at Taiwan Semiconductor, purchased 2,000 shares worth $139,810, as disclosed in a recent SEC filing. Taiwan Semiconductor's shares are currently down 2.15% at $387.45. The company, a leading chip foundry with a 70% market share, reported a revenue growth of 35.13% and maintains a gross margin of 66.25%. Its P/E ratio of 34.02 suggests potential undervaluation, while the P/S ratio indicates possible overvaluation. Insider transactions are seen as indicators of stock performance expectations.

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Noteworthy Insider Activity: BorZen Tien Invests $139K In Taiwan Semiconductor Stock