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

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for TSMC to $17.21 from $16.92, above the $17.03 consensus estimate. The analyst also projects FY2027 EPS of $22.82.
• TSMC recently reported quarterly EPS of $4.62 on $46.87 billion in revenue, with a 51.51% net margin and 42.84% return on equity.
• Analyst sentiment remains positive, with the stock carrying a consensus “Buy” rating and an average price target of $528.78, despite shares opening down 4.5% and the quarterly dividend being reduced to $1.0854 per share.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Investment analysts at Erste Group Bank upped their FY2026 EPS estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will earn $17.21 per share for the year, up from their previous estimate of $16.92. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $17.03 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $22.82 EPS.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last announced its quarterly earnings data on Tuesday, September 8th. The semiconductor company reported $4.62 EPS for the quarter. The company had revenue of $46.87 billion during the quarter. Taiwan Semiconductor Manufacturing had a net margin of 51.51% and a return on equity of 42.84%.

Other equities analysts have also recently issued research reports about the company. Citigroup reiterated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Weiss Ratings upgraded Taiwan Semiconductor Manufacturing from a "hold (c+)" rating to a "buy (b)" rating in a research note on Wednesday. Susquehanna upped their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a research note on Thursday, July 16th. Barclays raised their price objective on Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the company an "overweight" rating in a research report on Friday, October 16th. Finally, Stifel Nicolaus initiated coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They set a "buy" rating and a $515.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $528.78.

Taiwan Semiconductor Manufacturing Stock Down 4.5%

Shares of TSM stock opened at $412.35 on Friday. Taiwan Semiconductor Manufacturing has a 52-week low of $266.82 and a 52-week high of $487.47. The stock has a market cap of $2.14 trillion, a price-to-earnings ratio of 26.53, a PEG ratio of 0.88 and a beta of 1.37. The firm's 50-day moving average is $434.47 and its 200-day moving average is $420.16. The company has a debt-to-equity ratio of 0.14, a quick ratio of 2.25 and a current ratio of 2.46.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This is a decrease from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.1136. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing's payout ratio is 22.27%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan bought 350 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Tuesday, August 18th. The stock was bought at an average price of $73.58 per share, with a total value of $25,753.00. Following the completion of the transaction, the vice president owned 2,000 shares in the company, valued at $147,160. The trade was a 21.21% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Bor-Zen Tien bought 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction dated Monday, August 3rd. The stock was acquired at an average cost of $73.06 per share, with a total value of $73,060.00. Following the transaction, the vice president owned 14,051 shares of the company's stock, valued at $1,026,566.06. This trade represents a 7.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 8,043 shares of company stock valued at $598,956 in the last three months. Insiders own 1.11% of the company's stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

A number of institutional investors have recently bought and sold shares of TSM. Gibbs Wealth Management raised its position in shares of Taiwan Semiconductor Manufacturing by 37.7% in the third quarter. Gibbs Wealth Management now owns 3,884 shares of the semiconductor company's stock valued at $1,772,000 after buying an additional 1,064 shares in the last quarter. Lantern Wealth Advisors LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 42.0% in the third quarter. Lantern Wealth Advisors LLC now owns 980 shares of the semiconductor company's stock valued at $447,000 after buying an additional 290 shares during the period. James J. Burns & Company LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 13.3% in the third quarter. James J. Burns & Company LLC now owns 666 shares of the semiconductor company's stock valued at $304,000 after buying an additional 78 shares during the period. Farmers & Merchants Investments Inc. grew its position in Taiwan Semiconductor Manufacturing by 2.6% during the third quarter. Farmers & Merchants Investments Inc. now owns 97,970 shares of the semiconductor company's stock worth $44,693,000 after buying an additional 2,518 shares in the last quarter. Finally, Lighthouse Financial LLC grew its position in Taiwan Semiconductor Manufacturing by 18.9% during the third quarter. Lighthouse Financial LLC now owns 12,570 shares of the semiconductor company's stock worth $5,734,000 after buying an additional 1,999 shares in the last quarter. Institutional investors own 16.51% of the company's stock.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC remains better positioned than Intel in the foundry market because its manufacturing yields, production scale, advanced packaging and large outside-customer base are difficult to replicate. The Foundry Disconnect: Intel Nails the Transistor, But TSMC Holds the Keys to Yield and Scale
• Positive Sentiment: Moody’s upgraded TSMC’s issuer rating to Aa2 from Aa3 and moved the outlook to stable, citing strong AI demand, market dominance and the company’s financial strength. The upgrade supports investor confidence in TSMC’s balance sheet and expansion plans. Moody’s upgrades TSMC rating to Aa2
• Positive Sentiment: TSMC is reportedly discussing SpaceX’s proposed Terafab project, potentially creating another major customer opportunity. However, TSMC would participate only if it controls fab operations, making the project strategically significant but still uncommitted. Taiwan Semiconductor Wants In on SpaceX’s Terafab
• Positive Sentiment: Analysts and investor commentary continue to point to robust AI infrastructure spending as a multiyear growth driver, with some projections envisioning substantial earnings and share-price appreciation through 2030. Prediction: TSMC Stock Is Going to $1,200 by 2030
• Neutral Sentiment: Comparisons with ASML highlight intense AI-chip demand, but also supply constraints across the semiconductor ecosystem. TSMC’s ability to expand fabs, advanced nodes and packaging will determine how quickly it converts demand into revenue. ASML Vs. Taiwan Semiconductor
• Negative Sentiment: The supplied coverage does not identify a material new operational problem. Given TSM’s premium valuation and strong recent run, investors may be locking in gains or reassessing expectations for AI-driven growth, which can pressure the shares even while the long-term outlook remains favorable.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited NYSE: TSM, commonly known as TSMC, is a dedicated semiconductor foundry headquartered in Hsinchu, Taiwan. The company manufactures integrated circuits for customers that design their own chips, allowing semiconductor, electronics, and technology companies to outsource production rather than operate their own fabrication facilities.

TSMC provides wafer fabrication services across a broad range of process technologies, including advanced nodes used in high-performance computing, smartphones, automotive systems, and artificial intelligence applications.

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