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

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for TSMC to $16.72 from $16.69, above the $16.45 consensus estimate, and expects FY2027 EPS of $21.61.
• Analyst sentiment remains broadly positive: TSMC has a consensus “Buy” rating and a $524.25 average price target, with several firms recently raising their targets.
• TSMC continues to show strong fundamentals, including a 50.31% net margin and 44.7% reported July revenue growth, while institutional investors increased their holdings and insiders bought shares.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Analysts at Erste Group Bank increased their FY2026 earnings estimates for Taiwan Semiconductor Manufacturing in a research note issued on Thursday, August 27th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will post earnings per share of $16.72 for the year, up from their prior forecast of $16.69. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $16.45 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $21.61 EPS.

Other analysts have also issued research reports about the company. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. Needham & Company LLC boosted their target price on Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a "buy" rating in a report on Monday, July 27th. TD Cowen increased their price target on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a "hold" rating in a research note on Friday, July 17th. Citigroup reaffirmed a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Finally, Sanford C. Bernstein lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $524.25.

Taiwan Semiconductor Manufacturing Trading Up 0.2%

Shares of NYSE:TSM opened at $418.54 on Monday. Taiwan Semiconductor Manufacturing has a 52-week low of $225.63 and a 52-week high of $479.00. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46. The company has a market capitalization of $2.17 trillion, a P/E ratio of 30.20, a price-to-earnings-growth ratio of 0.96 and a beta of 1.39. The company has a 50-day simple moving average of $423.00 and a 200 day simple moving average of $396.38.

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

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently bought and sold shares of the business. Tiger Global Management LLC grew its holdings in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after purchasing an additional 1,839,600 shares during the last quarter. Van ECK Associates Corp lifted 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 last quarter. Life Cycle Investment Partners Ltd acquired a new stake in Taiwan Semiconductor Manufacturing in the fourth quarter valued at approximately $495,163,000. T. Rowe Price Investment Management Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock worth $636,077,000 after buying an additional 1,313,917 shares during the last quarter. Finally, SurgoCap Partners LP bought a new stake in shares of Taiwan Semiconductor Manufacturing during the third quarter worth $360,443,000. 16.51% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, VP Shyue-Shyh Lin purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, July 21st. The stock was acquired at an average cost of $74.13 per share, for a total transaction of $74,130.00. Following the purchase, the vice president directly owned 30,269 shares of the company's stock, valued at $2,243,840.97. This trade represents a 3.42% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Bor-Zen Tien acquired 1,000 shares of the stock in a transaction on Monday, August 3rd. The shares were purchased at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the transaction, the vice president directly owned 14,051 shares in the company, valued at approximately $1,026,566.06. This trade represents a 7.66% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 17,662 shares of company stock valued at $1,307,491. Insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is presently 21.43%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC is advancing its A14 process technology for AI chips, targeting improved performance and power efficiency. The A13 and A12 nodes also extend the company’s next-generation process roadmap, reinforcing its competitive position in leading-edge semiconductor manufacturing. How TSMC is Advancing its A14 Technology Roadmap for AI Transformation
• Positive Sentiment: TSMC is reportedly set to manufacture Xiaomi’s Xring O3 processor using its 3-nanometer technology. The order expands TSMC’s advanced-chip customer base beyond major traditional chip designers and supports demand from AI-enabled consumer devices and autonomous-driving applications. Why Is Taiwan Semiconductor Manufacturing Winning More 3nm AI Chip Work?
• Positive Sentiment: A $4.7 billion joint venture with Sony to develop and manufacture next-generation smartphone image sensors highlights TSMC’s expansion into sensors for AI-enabled devices. Mass production is expected to begin in 2029, offering a longer-term growth opportunity. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the Eyes of AI Machines
• Positive Sentiment: Billionaire investor Stanley Druckenmiller and another hedge fund reportedly bought TSMC shares, signaling continued institutional confidence in the foundry’s role as a leading way to invest in the AI semiconductor trend. Stanley Druckenmiller Just Bought Taiwan Semiconductor Stock
• Neutral Sentiment: TSMC’s reported 44.7% revenue growth in July underscores powerful demand, but the strength also raises the performance and guidance bar for the broader AI-chip supply chain. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry
• Negative Sentiment: After a substantial run-up and with shares trading at a premium valuation, investors may be taking profits or demanding results that exceed already-strong AI growth expectations. The supplied articles do not identify a new fundamental setback at TSMC.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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