What is Erste Group Bank’s Forecast for TSM FY2026 Earnings?

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Analysts at Erste Group Bank raised their FY2026 EPS estimates for shares of Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Friday, September 18th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor company will post earnings of $16.78 per share for the year, up from their prior estimate of $16.72. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.56 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing’s FY2027 earnings at $21.91 EPS.

TSM has been the topic of a number of other reports. Stifel Nicolaus started coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a “buy” rating and a $515.00 price objective on the stock. Susquehanna increased their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. DA Davidson lifted their target price on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. TD Cowen boosted their price target on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Finally, Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Stock Down 1.2%

Shares of NYSE TSM opened at $446.57 on Tuesday. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The stock has a market capitalization of $2.32 trillion, a PE ratio of 32.22, a P/E/G ratio of 1.00 and a beta of 1.39. Taiwan Semiconductor Manufacturing has a one year low of $266.82 and a one year high of $479.00. The business’s fifty day moving average price is $419.04 and its 200-day moving average price is $404.06.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.25% and a net margin of 50.31%.The business had revenue of $39.89 billion during the quarter.

Institutional Trading of Taiwan Semiconductor Manufacturing

Hedge funds have recently made changes to their positions in the stock. Brookstone Capital Management boosted its stake in shares of Taiwan Semiconductor Manufacturing by 87.3% during the 2nd quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company’s stock worth $12,008,000 after acquiring an additional 11,719 shares in the last quarter. Capital Research Global Investors increased its stake in shares of Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock valued at $976,821,000 after purchasing an additional 1,281,648 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new position in Taiwan Semiconductor Manufacturing in the 4th quarter worth about $961,000. Y Intercept Hong Kong Ltd raised its holdings in Taiwan Semiconductor Manufacturing by 273.2% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company’s stock worth $27,438,000 after purchasing an additional 59,435 shares during the period. Finally, Opal Capital LLC boosted its position in Taiwan Semiconductor Manufacturing by 72.5% during the first quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company’s stock worth $9,384,000 after purchasing an additional 11,666 shares in the last quarter. 16.51% of the stock is owned by institutional investors.

Insider Activity

In other news, VP Shyue-Shyh Lin purchased 2,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Sunday, July 19th. The stock was purchased at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the transaction, the vice president directly owned 28,269 shares of the company’s stock, valued at approximately $2,027,169.99. This trade represents a 7.61% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Shu-Hua Fang acquired 2,000 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were acquired at an average cost of $77.09 per share, with a total value of $154,180.00. Following the purchase, the senior vice president directly owned 8,206 shares of the company’s stock, valued at $632,600.54. This trade represents a 32.23% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 19,106 shares of company stock valued at $1,417,283 in the last quarter. 1.11% of the stock is currently owned by company insiders.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Thursday, December 10th will be paid a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 25.25%.

Taiwan Semiconductor Manufacturing News Summary

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

• Positive Sentiment: TSMC’s next-generation A14 process is gaining customer traction, with tape-outs reportedly ahead of schedule and volume production targeted for 2028. Strong early demand supports the company’s long-term leadership in advanced chips. TSMC’s A14 Gains Customer Traction Ahead of 2028 Volume Production
• Positive Sentiment: A new validation hub in Kaohsiung could bring advanced packaging capabilities closer to customers and suppliers, potentially shortening qualification cycles, although it does not add disclosed production capacity. TSMC Gains as Packaging Moves Closer to Its Suppliers
• Positive Sentiment: Erste Group raised its fiscal 2026 and 2027 EPS forecasts to $16.78 and $21.91, respectively, modestly above consensus estimates. The revisions reinforce expectations for strong earnings growth from advanced-node demand. Erste Group Raises TSMC EPS Estimates
• Neutral Sentiment: Analysts remain broadly bullish, but the articles note that average brokerage recommendations can be overly optimistic and should not be viewed as a standalone buy signal. Wall Street Bulls Look Optimistic About TSMC
• Negative Sentiment: TSMC is exposed to a broader technology-market pullback. Warning signs among some Nasdaq technology stocks may be encouraging investors to lock in gains, particularly with TSM trading near its 52-week high and at a forward-looking valuation requiring continued strong growth. Nasdaq Rally Hasn’t Stopped These Tech Stocks From Flashing Warning Signs

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.