Erste Group Bank Issues Positive Forecast for TSM Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Taiwan Semiconductor Manufacturing to $19.85 from $19.78, above the current consensus estimate of $15.35 per share.
• TSMC has continued to draw upbeat analyst sentiment, with recent price-target hikes and a broad Buy consensus suggesting confidence in its earnings outlook and AI exposure.
• The stock was trading near its 52-week high after a roughly 5% move higher, while the company also recently increased its quarterly dividend to $1.1136 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Stock analysts at Erste Group Bank raised their FY2027 earnings per share estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Thursday, June 25th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will post earnings per share of $19.85 for the year, up from their previous estimate of $19.78. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $15.35 per share.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The company had revenue of $30.65 billion for the quarter.

TSM has been the topic of several other research reports. Susquehanna lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the company a "positive" rating in a research report on Monday, June 22nd. Weiss Ratings restated a "buy (b-)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, June 17th. Needham & Company LLC raised their target price on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a report on Sunday, March 22nd. Finally, Bank of America lifted their price target on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $449.38.

Taiwan Semiconductor Manufacturing Trading Up 5.0%

TSM stock opened at $477.85 on Wednesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. Taiwan Semiconductor Manufacturing has a 1-year low of $221.18 and a 1-year high of $479.00. The business has a 50 day simple moving average of $417.94 and a two-hundred day simple moving average of $366.08. The company has a market capitalization of $2.48 trillion, a price-to-earnings ratio of 39.75, a PEG ratio of 1.15 and a beta of 1.38.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors and hedge funds have recently made changes to their positions in TSM. VectorGlobal IAG Inc. purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the 1st quarter valued at about $10,999,000. Hamilton Wealth LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 0.8% in the 1st quarter. Hamilton Wealth LLC now owns 41,701 shares of the semiconductor company's stock valued at $14,093,000 after acquiring an additional 341 shares during the last quarter. Ballast Advisors LLC grew its position in Taiwan Semiconductor Manufacturing by 2.6% in the first quarter. Ballast Advisors LLC now owns 23,886 shares of the semiconductor company's stock worth $8,072,000 after acquiring an additional 600 shares in the last quarter. PVG Asset Management Corp grew its position in Taiwan Semiconductor Manufacturing by 509.2% in the first quarter. PVG Asset Management Corp now owns 5,666 shares of the semiconductor company's stock worth $1,915,000 after acquiring an additional 4,736 shares in the last quarter. Finally, LFG Wealth Partners LLC grew its position in Taiwan Semiconductor Manufacturing by 1.2% in the first quarter. LFG Wealth Partners LLC now owns 10,519 shares of the semiconductor company's stock worth $3,555,000 after acquiring an additional 122 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien bought 2,000 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the acquisition, the vice president owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Tzu-Sou Chuang sold 200,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were 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 directly owned 2,495,165 shares of the company's stock, valued at approximately $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders bought 5,496 shares of company stock worth $404,567. 1.11% of the stock is currently owned by insiders.

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 issued a dividend of $1.1136 per share. 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. This represents a $4.45 annualized dividend and a dividend yield of 0.9%. Taiwan Semiconductor Manufacturing's payout ratio is currently 25.12%.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC is reportedly accelerating development of panel-level CoPoS advanced packaging for AI chips, a next-generation technology that could strengthen its long-term competitive moat and support future AI-related revenue growth. TSMC targets 2029 for panel-level CoPoS packaging in AI chip push - DigiTimes
• Positive Sentiment: Several market recaps say TSMC remains a preferred way to play the AI semiconductor boom, with analysts citing manufacturing expansion, steady estimate revisions, and broad AI infrastructure spending as reasons the stock could have more upside. TSMC vs. NVIDIA: Which AI Semiconductor Stock Should You Buy in July?
• Positive Sentiment: TSMC was highlighted in another AI-capex stock-pick article as a key beneficiary of rising demand for chips, reinforcing the view that the company is one of the main winners from the current AI spending cycle. 4 Semiconductor Stocks to Buy Right Now to Ride on the AI Capex Boom
• Positive Sentiment: TSMC also received a consensus “Buy” rating from analysts, which supports the stock’s upward move by signaling continued Street confidence in the company’s earnings power and AI exposure. Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM Receives Consensus Rating of "Buy" from Analysts
• Neutral Sentiment: One report noted that a TSMC vice president bought 1,000 shares in an insider purchase, a modest confidence signal but not a major near-term catalyst. Insider transaction filing
• Negative Sentiment: One market update said the stock was down slightly in premarket trading as investors paused after its strong run toward record highs, suggesting some near-term profit taking after a sharp rally. What’s Going On With Taiwan Semiconductor Stock Tuesday?

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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