What is Erste Group Bank's Estimate for TSM FY2026 Earnings?

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for TSMC to $16.78, up from $16.72 and above the broader consensus estimate of $16.55.
• The analyst also projects FY2027 earnings of $21.91 per share, reflecting expectations for continued growth.
• TSMC maintains a favorable analyst outlook, with a consensus “Buy” rating and an average price target of $523.22.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Research analysts at Erste Group Bank lifted their FY2026 earnings estimates for shares of Taiwan Semiconductor Manufacturing in a note issued to 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 $16.55 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $21.91 EPS.

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

Other analysts also recently issued reports about the stock. DA Davidson increased their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Bank of America upped their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Wall Street Zen lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Taiwan Semiconductor Manufacturing has a consensus rating of "Buy" and an average target price of $523.22.

Taiwan Semiconductor Manufacturing Price Performance

Taiwan Semiconductor Manufacturing stock opened at $445.33 on Tuesday. The firm has a market capitalization of $2.31 trillion, a P/E ratio of 32.13, a PEG ratio of 0.96 and a beta of 1.39. Taiwan Semiconductor Manufacturing has a 1 year low of $265.45 and a 1 year high of $479.00. The business has a 50-day moving average of $417.87 and a 200-day moving average of $402.75. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing Cuts Dividend

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

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Bor-Zen Tien purchased 3,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction on Tuesday, July 21st. The stock was purchased at an average price of $74.39 per share, with a total value of $223,170.00. Following the transaction, the vice president directly owned 4,000 shares in the company, valued at $297,560. The trade was a 300.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP Shu-Hua Fang purchased 2,000 shares of the firm's stock in a transaction dated 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 completion of the purchase, the senior vice president directly owned 8,206 shares in the company, valued at approximately $632,600.54. This represents a 32.23% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 19,106 shares of company stock valued at $1,417,283 in the last ninety days. Corporate insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TSM. Hilton Head Capital Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at approximately $27,000. Strategic Advocates LLC raised its stake in Taiwan Semiconductor Manufacturing by 62.1% in the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company's stock valued at $28,000 after buying an additional 36 shares during the period. Basepoint Wealth LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $31,000. Evolution Wealth Management Inc. boosted its position in Taiwan Semiconductor Manufacturing by 257.7% during the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 67 shares during the period. Finally, Cedar Mountain Advisors LLC boosted its holdings in shares of Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company's stock worth $31,000 after buying an additional 30 shares during the period. Institutional investors own 16.51% of the company's stock.

More Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Advanced-packaging expansion strengthens the AI growth outlook. Taiwan broke ground on a Kaohsiung industrial park anchored by TSMC, where the company plans technology-validation and talent-training facilities. The project is intended to address packaging bottlenecks as demand from Nvidia and other chip designers increases. Taiwan breaks ground on advanced packaging park anchored by TSMC
• Positive Sentiment: AI-related pricing and demand signals are supportive. A supply-chain report indicated that AMD plans to raise chip prices by 10% in the fourth quarter because of higher wafer costs, reinforcing expectations that strong AI demand is improving pricing power across the semiconductor supply chain, including TSMC. AMD Rises 5% as Report Flags 10% Chip Price Increase
• Positive Sentiment: TSMC’s competitive moat remains a key investment theme. Commentary highlighted that the foundry controls more than two-thirds of the global market and manufactures chips for nearly all major technology companies, supporting expectations for continued growth and durable customer relationships. Taiwan Semiconductor Manufacturing's Foundry Market Share Is a Massive Moat Nobody Talks About
• Neutral Sentiment: New infrastructure offers long-term benefits but not immediate revenue. Taiwan’s supplier-validation lab and training center are expected to take roughly three years to become operational, leaving execution, spending, and timing risks before the capacity contributes meaningfully. TSMC Gains as 88.7 Hectares Target Packaging Friction
• Neutral Sentiment: Broader Asian technology shares advanced after U.S.-China talks were described as successful, improving near-term risk sentiment for Taiwan-listed semiconductor companies. However, trade and geopolitical issues remain potential sources of volatility. Stocks advance after Bessent says talks with China were successful

About Taiwan Semiconductor Manufacturing

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.

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