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

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for TSMC to $16.92, up from $16.78 and above the consensus estimate of $16.56. The bank projects FY2027 EPS of $22.26.
• TSMC recently reported quarterly EPS of $4.28 on $39.89 billion in revenue, with a 50.31% net margin and 39.25% return on equity.
• Analyst sentiment remains favorable, with TSMC holding a consensus “Buy” rating and an average price target of $524.89; shares opened at $444.81, while the company’s quarterly dividend was reduced to $1.0854 from $1.1136.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Research analysts at Erste Group Bank increased their FY2026 EPS estimates for Taiwan Semiconductor Manufacturing in a report issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will earn $16.92 per share for the year, up from their prior estimate of $16.78. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $16.56 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $22.26 EPS.

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

A number of other analysts have also recently weighed in on the stock. Barclays boosted their target price on shares of Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 6th. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Sanford C. Bernstein raised their price objective on Taiwan Semiconductor Manufacturing from $430.00 to $554.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Finally, Stifel Nicolaus began coverage on Taiwan Semiconductor Manufacturing in a research report on Tuesday, September 1st. They set a "buy" rating and a $515.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $524.89.

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE:TSM opened at $444.81 on Tuesday. Taiwan Semiconductor Manufacturing has a one year low of $266.82 and a one year high of $487.47. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.46 and a quick ratio of 2.25. The company has a market cap of $2.31 trillion, a price-to-earnings ratio of 32.09, a PEG ratio of 1.00 and a beta of 1.37. The firm has a 50 day simple moving average of $433.89 and a 200 day simple moving average of $415.05.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be paid a $1.0854 dividend. This is a negative change from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. 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 payout ratio is presently 24.96%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Lipen Yuan acquired 350 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was acquired at an average cost of $73.58 per share, for a total transaction of $25,753.00. Following the completion of the acquisition, the vice president directly owned 2,000 shares of the company's stock, valued at approximately $147,160. This trade represents a 21.21% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Shyue-Shyh Lin bought 1,000 shares of the stock in a transaction that occurred on Tuesday, July 21st. The shares were bought at an average cost of $74.13 per share, with a total value of $74,130.00. Following the completion of the transaction, the vice president owned 30,269 shares in the company, valued at $2,243,840.97. The trade was a 3.42% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased 16,043 shares of company stock worth $1,185,746 over the last three months. Company insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Hedge funds have recently made changes to their positions in the stock. Brookstone Capital Management boosted its holdings in Taiwan Semiconductor Manufacturing by 87.3% in the second quarter. Brookstone Capital Management now owns 25,143 shares of the semiconductor company's stock worth $12,008,000 after acquiring an additional 11,719 shares in the last quarter. Y Intercept Hong Kong Ltd grew its stake in shares of Taiwan Semiconductor Manufacturing by 273.2% in the first quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company's stock worth $27,438,000 after acquiring an additional 59,435 shares during the last quarter. Opal Capital LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 72.5% during the first quarter. Opal Capital LLC now owns 27,767 shares of the semiconductor company's stock valued at $9,384,000 after acquiring an additional 11,666 shares in the last quarter. Western Wealth Management LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 27.4% during the first quarter. Western Wealth Management LLC now owns 27,954 shares of the semiconductor company's stock valued at $9,447,000 after acquiring an additional 6,013 shares in the last quarter. Finally, Elevation Point Wealth Partners LLC increased its holdings in shares of Taiwan Semiconductor Manufacturing by 306.7% during the first quarter. Elevation Point Wealth Partners LLC now owns 52,397 shares of the semiconductor company's stock valued at $17,728,000 after acquiring an additional 39,514 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: Strong AI demand supports an upbeat earnings outlook. Analysts expect approximately $46.7 billion in third-quarter revenue and $23.4 billion in profit, with reports suggesting TSMC could deliver another earnings surprise. Accelerating revenue growth, price increases and expanding production capacity could provide a stronger outlook for 2027. TSMC Eyes $23.4 Billion Q3 Profit on $46.7 Billion Revenue
• Positive Sentiment: TSMC’s strategic position remains a major long-term attraction. Its leading share of advanced logic-chip manufacturing makes the company a key supplier for AI infrastructure, while growing capacity and solid margins could support substantial earnings and stock-price gains through 2030. Here’s What a $1,400 Investment in TSMC Stock Could Be Worth
• Neutral Sentiment: October 15 earnings are the immediate catalyst. Investors are focused on whether TSMC raises guidance, confirms sustained AI-chip demand and demonstrates that capacity additions can keep pace with customers’ needs. The report may also influence sentiment toward Nvidia and the broader AI semiconductor trade. Why October 15 Could Change Everything for Taiwan Semiconductor Stock
• Negative Sentiment: Valuation and execution risks are limiting enthusiasm. After a substantial AI-driven rally, investors are questioning whether TSMC’s cash generation justifies its valuation and whether heavy capital spending will translate into sufficient returns. Expectations for a strong report also increase the risk of profit-taking if guidance falls short. Can Taiwan Semiconductor Manufacturing Justify Its Price on Cash Flow?
• Negative Sentiment: Competitive and macroeconomic concerns remain. Microsoft’s push toward custom AI chips could weigh on semiconductor-sector sentiment, while inflation data, interest rates and geopolitical risks surrounding Taiwan remain potential sources of volatility. Why Nvidia Stock Is Down Around 1.6%

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world's largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.

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