Erste Group Bank Has Positive Outlook of TSM FY2026 Earnings

Key Points

• Erste Group Bank raised TSMC’s FY2026 EPS estimate to $16.69 from $15.82, above the $16.34 consensus, and projects FY2027 EPS of $21.25.
• Analyst sentiment remains strongly positive: TSMC has a consensus “Buy” rating, with three Strong Buy, twelve Buy and one Hold rating; price targets include Susquehanna’s $600 and Needham’s $530.
• TSMC reported quarterly EPS of $4.28 on $39.89 billion in revenue and increased its quarterly dividend to $1.1136 per share, equivalent to a 1.2% yield.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Erste Group Bank boosted their FY2026 earnings estimates for shares of Taiwan Semiconductor Manufacturing in a report released on Monday, July 27th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will earn $16.69 per share for the year, up from their prior estimate of $15.82. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $16.34 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $21.25 EPS.

Several other research firms also recently commented on TSM. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 18th. Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a report on Thursday, July 16th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Needham & Company LLC lifted their price target on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a "buy" rating in a research note on Monday. Finally, Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $496.25.

Taiwan Semiconductor Manufacturing Stock Performance

NYSE TSM opened at $373.83 on Thursday. The company has a 50-day simple moving average of $427.21 and a two-hundred day simple moving average of $383.56. Taiwan Semiconductor Manufacturing has a 12-month low of $223.70 and a 12-month high of $479.00. The firm has a market cap of $1.94 trillion, a price-to-earnings ratio of 26.97, a PEG ratio of 0.91 and a beta of 1.36. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The company had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 40.88%.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a dividend yield of 1.2%. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's payout ratio is currently 21.43%.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price of $79.19 per share, for a total transaction of $79,190.00. Following the acquisition, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This trade represents a 25.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Shyue-Shyh Lin purchased 1,000 shares of the stock in a transaction on Tuesday, July 21st. The shares were acquired at an average cost of $74.13 per share, with a total value of $74,130.00. Following the transaction, the vice president directly owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have purchased 15,857 shares of company stock valued at $1,167,094. Company insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds and other institutional investors have recently made changes to their positions in TSM. Capital Research Global Investors increased its position in Taiwan Semiconductor Manufacturing by 66.3% during 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 buying an additional 1,281,648 shares in the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter worth $961,000. Meridian Wealth Management LLC grew its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% in the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company's stock worth $20,049,000 after acquiring an additional 14,406 shares during the last quarter. Y Intercept Hong Kong Ltd grew its stake in shares of Taiwan Semiconductor Manufacturing by 273.2% in the first quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company's stock worth $27,438,000 after acquiring an additional 59,435 shares during the last quarter. Finally, Stiles Financial Services Inc increased its holdings in shares of Taiwan Semiconductor Manufacturing by 79.1% during the fourth quarter. Stiles Financial Services Inc now owns 4,355 shares of the semiconductor company's stock valued at $1,323,000 after acquiring an additional 1,923 shares in the last quarter. Institutional investors own 16.51% of the company's stock.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC recently reported record second-quarter results, including approximately $40 billion in revenue, and raised its outlook. Strong demand from artificial-intelligence and high-performance-computing customers remains the company’s central growth driver. These 3 Companies Reported Record Results and Raised Guidance
• Positive Sentiment: Needham raised its TSMC price target to $530 and maintained a buy rating, reflecting confidence that higher capital spending—reported at up to $64 billion for 2026—will expand advanced-chip capacity and support long-term AI and HPC demand. Needham Boosts TSMC Price Target
• Positive Sentiment: Multiple TSMC vice presidents disclosed open-market purchases totaling tens of thousands of dollars. The buying is a modestly positive confidence signal, although it is immaterial relative to TSMC’s market capitalization. SEC Insider Purchase Filing
• Neutral Sentiment: A strong earthquake in Japan temporarily prompted an evacuation at TSMC’s Kumamoto facility, but the company said personnel were safe and operations were gradually resuming. The construction site was not affected, limiting the likely financial impact. TSMC Japan Plant Resuming After Earthquake
• Negative Sentiment: TSMC is being pulled lower by a wider technology-sector decline and an AI-stock rout, despite its record profit. Leveraged selling and fears of circular AI funding, China competition and excessive valuations are reducing risk appetite across chip stocks. TSMC Stock Drops as AI Rout Spreads
• Negative Sentiment: Fresh questions about the sustainability of AI spending and TSMC’s exposure to China-related equipment are adding to investor uncertainty. Weak guidance from Qualcomm also highlights softer smartphone conditions, although TSMC’s AI exposure is stronger than its mobile exposure. Fresh Questions Over China Tools and AI Spending

Taiwan Semiconductor Manufacturing Company Profile

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.

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