Erste Group Bank Has Positive Outlook of TSM FY2027 Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Taiwan Semiconductor Manufacturing to $20.58 from $19.85, well above the current consensus estimate of $15.44 per share.
• TSMC’s latest earnings beat expectations, with quarterly EPS of $3.49 versus $3.31 expected and revenue of $35.49 billion, up 40.6% year over year.
• Analyst sentiment remains broadly positive, with multiple firms reaffirming or raising ratings and price targets; MarketBeat shows an average rating of Moderate Buy and an average price target of $475.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Equities research analysts at Erste Group Bank boosted their FY2027 EPS estimates for shares of Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will post earnings of $20.58 per share for the year, up from their prior estimate of $19.85. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $15.44 per share.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Wednesday, April 15th. The semiconductor company reported $3.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.31 by $0.18. The business had revenue of $35.49 billion for the quarter, compared to analysts' expectations of $35.47 billion. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The business's revenue for the quarter was up 40.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.12 EPS.

Other research analysts have also recently issued research reports about the stock. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, March 22nd. Weiss Ratings downgraded Taiwan Semiconductor Manufacturing from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday. Barclays set a $650.00 price target on shares of Taiwan Semiconductor Manufacturing in a report on Friday. Finally, Susquehanna increased their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $475.00.

Taiwan Semiconductor Manufacturing Stock Down 2.7%

TSM stock opened at $408.36 on Friday. The stock has a 50-day simple moving average of $427.06 and a two-hundred day simple moving average of $377.80. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $2.12 trillion, a PE ratio of 33.97, a PEG ratio of 1.04 and a beta of 1.36. Taiwan Semiconductor Manufacturing has a twelve month low of $223.70 and a twelve month high of $479.00.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fisher Asset Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company's stock valued at $5,514,662,000 after acquiring an additional 313,773 shares during the period. Van ECK Associates Corp lifted its position in shares of Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock valued at $5,307,428,000 after acquiring an additional 1,750,824 shares in the last quarter. Bank of America Corp DE boosted its stake in Taiwan Semiconductor Manufacturing by 6.5% in the 4th quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company's stock worth $4,832,708,000 after purchasing an additional 966,926 shares during the period. Jennison Associates LLC boosted its position in shares of Taiwan Semiconductor Manufacturing by 6.4% during the fourth quarter. Jennison Associates LLC now owns 13,394,299 shares of the semiconductor company's stock worth $4,070,393,000 after acquiring an additional 802,757 shares during the last quarter. Finally, Coatue Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 6.9% during the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company's stock valued at $2,622,426,000 after purchasing an additional 556,988 shares during the last quarter. Institutional investors own 16.51% of the company's stock.

Insider Buying and Selling at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan bought 1,000 shares of the company's stock in a transaction on Monday, June 22nd. The shares were acquired at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the acquisition, the vice president owned 5,000 shares of the company's stock, valued at $395,950. The trade was a 25.00% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. The trade was a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders purchased 6,857 shares of company stock worth $512,334. 1.11% of the stock is owned by insiders.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. The ex-dividend date is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 24.71%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC’s Q2 results showed record profit and revenue growth, reinforcing that AI demand remains exceptionally strong. TSMC Q2 profit jumps 77% to record, far surpasses expectations
• Positive Sentiment: Management raised its outlook and highlighted durable demand for AI processors, which supports the long-term growth case for Taiwan Semiconductor Manufacturing Company Ltd. (TSM). TSMC’s (TSM) Record Q2 Points to an Accelerating AI Supercycle
• Neutral Sentiment: TSMC announced a massive $100 billion increase in U.S. investment, which expands capacity but also raises questions about future capital intensity and free cash flow. Taiwan Semi's AI Spending Spree Tests Investor Nerves as Capex Surges Past $60 Billion
• Negative Sentiment: Investors sold the stock after the earnings release because they worried the higher capex plan could pressure margins and returns, even though the quarter was strong. Why is TSMC stock falling despite record Q2 earnings?
• Negative Sentiment: A broader semiconductor selloff also hit TSMC, with traders worried that AI-related spending and valuations across the chip sector may be near a peak. Sandisk, UnitedHealth, J.B. Hunt, TSMC, and More Stocks That Explain Today's Market

About Taiwan Semiconductor Manufacturing

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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