Wedbush Issues Positive Forecast for TSM Earnings

Key Points

• Wedbush has raised its Q3 2025 earnings per share estimate for Taiwan Semiconductor Manufacturing to $2.56, up from a previous forecast of $2.52, indicating positive expectations for the semiconductor firm's performance.
• The company recently increased its quarterly dividend to $0.8348 per share, raising the annualized yield to about 1.1%.
• Taiwan Semiconductor's stock is rated as a "Moderate Buy" with a consensus target price of $288.33, supported by multiple analysts upgrading their ratings.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Wedbush boosted their Q3 2025 earnings per share (EPS) estimates for Taiwan Semiconductor Manufacturing in a report released on Thursday, October 9th. Wedbush analyst M. Bryson now anticipates that the semiconductor company will earn $2.56 per share for the quarter, up from their previous forecast of $2.52. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $9.20 per share. Wedbush also issued estimates for Taiwan Semiconductor Manufacturing's Q4 2025 earnings at $2.59 EPS, FY2025 earnings at $9.81 EPS, Q1 2026 earnings at $2.24 EPS, Q2 2026 earnings at $2.72 EPS, Q3 2026 earnings at $2.98 EPS, Q4 2026 earnings at $3.12 EPS and FY2026 earnings at $11.06 EPS.

Several other research analysts have also recently weighed in on TSM. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $325.00 to $330.00 and gave the stock an "overweight" rating in a research report on Thursday. Wall Street Zen raised Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Needham & Company LLC restated a "buy" rating and issued a $270.00 price target on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Finally, Itau BBA Securities assumed coverage on Taiwan Semiconductor Manufacturing in a research note on Tuesday. They issued an "outperform" rating for the company. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $288.33.

Taiwan Semiconductor Manufacturing Stock Down 1.5%

TSM stock opened at $299.90 on Friday. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15. The stock has a market capitalization of $1.56 trillion, a P/E ratio of 34.20, a P/E/G ratio of 1.45 and a beta of 1.28. The business has a 50-day moving average of $255.00 and a 200-day moving average of $216.42. Taiwan Semiconductor Manufacturing has a fifty-two week low of $134.25 and a fifty-two week high of $307.30.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.13 by $0.34. The company had revenue of $30.07 billion during the quarter, compared to analysts' expectations of $28.50 billion. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.Taiwan Semiconductor Manufacturing's revenue for the quarter was up 44.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.48 earnings per share. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 11th will be paid a dividend of $0.8348 per share. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. The ex-dividend date is Thursday, December 11th. This represents a $3.34 dividend on an annualized basis and a yield of 1.1%. Taiwan Semiconductor Manufacturing's dividend payout ratio is 29.99%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. increased its stake in Taiwan Semiconductor Manufacturing by 55.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 17,306,108 shares of the semiconductor company's stock worth $2,872,814,000 after acquiring an additional 6,180,445 shares during the period. Bank of America Corp DE increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.8% in the 2nd quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock valued at $3,353,348,000 after purchasing an additional 115,158 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Taiwan Semiconductor Manufacturing by 19.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 12,350,239 shares of the semiconductor company's stock valued at $2,050,141,000 after purchasing an additional 1,984,835 shares during the last quarter. Jennison Associates LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 26.7% in the 2nd quarter. Jennison Associates LLC now owns 12,046,792 shares of the semiconductor company's stock valued at $2,728,478,000 after purchasing an additional 2,537,760 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in shares of Taiwan Semiconductor Manufacturing by 18.0% in the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock valued at $2,368,587,000 after purchasing an additional 1,593,786 shares during the last quarter. Institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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