Erste Group Bank Issues Optimistic Forecast for TSM Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Taiwan Semiconductor Manufacturing to $19.65 from $19.56, signaling a slightly more optimistic outlook. That estimate is well above the current consensus of $15.25 per share.
• Analyst sentiment on TSM remains broadly bullish, with the stock carrying an average “Buy” rating and a consensus price target of $404.29. The article notes multiple recent positive ratings from firms including Wedbush, DBS Bank, and DA Davidson.
• TSMC also recently increased its quarterly dividend to $1.1136 per share from $0.95, reflecting stronger shareholder returns. The new payout implies an annualized dividend of $4.45 and a yield of about 1.1%.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Equities researchers at Erste Group Bank lifted their FY2027 EPS estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Tuesday, May 12th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will earn $19.65 per share for the year, up from their previous estimate of $19.56. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $15.25 per share.

TSM has been the subject of several other reports. Weiss Ratings raised Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Wedbush reaffirmed an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research note on Friday, January 23rd. Zacks Research downgraded Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Finally, DA Davidson restated a "buy" rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE TSM opened at $395.84 on Tuesday. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.51 and a quick ratio of 2.32. The business has a 50-day moving average of $366.23 and a 200-day moving average of $335.73. The stock has a market capitalization of $2.05 trillion, a price-to-earnings ratio of 32.93, a PEG ratio of 1.18 and a beta of 1.39. Taiwan Semiconductor Manufacturing has a fifty-two week low of $188.81 and a fifty-two week high of $421.97.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 38.17%. The firm had revenue of $30.65 billion for the quarter.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be paid a $1.1136 dividend. 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 yield of 1.1%. The ex-dividend date is Wednesday, September 16th. Taiwan Semiconductor Manufacturing's dividend payout ratio is currently 24.71%.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the acquisition, the vice president owned 11,051 shares of the company's stock, valued at $772,575.41. The trade was a 22.10% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Tzu-Sou Chuang sold 200,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total value of $13,966,000.00. Following the completion of the sale, the vice president owned 2,495,165 shares in the company, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders bought 3,346 shares of company stock valued at $218,005. Insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors and hedge funds have recently modified their holdings of the stock. Tiger Global Management LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock worth $1,880,717,000 after acquiring an additional 1,839,600 shares during the period. Van ECK Associates Corp boosted its stake in Taiwan Semiconductor Manufacturing by 11.1% in the 4th quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock valued at $5,307,428,000 after purchasing an additional 1,750,824 shares during the period. Life Cycle Investment Partners Ltd bought a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. grew its holdings in Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock valued at $636,077,000 after buying an additional 1,313,917 shares in the last quarter. Finally, SurgoCap Partners LP bought a new position in Taiwan Semiconductor Manufacturing during the 3rd quarter worth $360,443,000. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Coatue Management reportedly boosted its TSMC stake by 654,023 shares, reinforcing the view that large investors still see upside in the company’s AI-driven growth. Coatue Management boosts Taiwan Semiconductor stake by 654,023 shares
• Positive Sentiment: Several articles highlighted TSMC as a preferred way to play the AI semiconductor boom, including pieces noting it could benefit heading into Nvidia’s earnings and that it remains a top stock among billionaire investors. Nvidia Stock May or May Not Soar on May 20, But This Super AI Semiconductor Stock Could Pop and Go On a Terrific Bull Run
• Positive Sentiment: Commentary also framed TSMC as part of an “AI Revolution” basket and a long-term multibagger candidate, supporting bullish sentiment on the company’s role in advanced chip manufacturing. CIO touts 'AIR 7' as AI-heavy alternative to 'Magnificent 7'
• Neutral Sentiment: TSMC Vice President Bor-Zen Tien bought 2,000 shares, but another vice president sold 200,000 shares. The mixed insider activity is notable, but by itself it does not clearly point to a major change in fundamentals. SEC filing for Bor-Zen Tien purchase SEC filing for Tzu-Sou Chuang sale
• Neutral Sentiment: TSMC announced it will sell about 152 million Vanguard International Semiconductor shares, a move described as a capital-refocusing decision rather than a signal of distress. TSMC Trims Vanguard Stake To Refocus Capital And Valuation Story
• Negative Sentiment: CNBC reported that the Iran war is adding pressure to AI chip supply chains and costs, which could weigh on semiconductor makers like TSMC if disruptions persist. Tech investors loved this earnings season — but the Iran war is piling pressure on the companies powering the AI boom

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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