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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Erste Group Bank lifted their FY2026 earnings per share estimates for shares of Taiwan Semiconductor Manufacturing in a report issued on Monday, April 27th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will post earnings per share of $15.64 for the year, up from their previous forecast of $14.39. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $15.10 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $19.53 EPS.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 38.17% and a net margin of 46.97%.The business had revenue of $30.65 billion during the quarter.

Several other brokerages have also recently issued reports on TSM. DA Davidson reiterated a "buy" rating and set a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a report on Friday, April 17th. Argus upgraded shares of Taiwan Semiconductor Manufacturing to a "strong-buy" rating in a research note on Thursday, January 15th. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Needham & Company LLC boosted their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. Finally, Dbs Bank upgraded Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a report on Friday, January 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of Taiwan Semiconductor Manufacturing stock opened at $393.04 on Thursday. The company has a current ratio of 2.51, a quick ratio of 2.32 and a debt-to-equity ratio of 0.17. The stock's fifty day moving average price is $358.31 and its 200-day moving average price is $327.17. The firm has a market cap of $2.04 trillion, a P/E ratio of 32.70, a P/E/G ratio of 1.20 and a beta of 1.35. Taiwan Semiconductor Manufacturing has a 12 month low of $161.75 and a 12 month high of $414.50.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 11th will be paid a $0.9503 dividend. The ex-dividend date is Thursday, June 11th. This represents a $3.80 dividend on an annualized basis and a yield of 1.0%. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 24.96%.

Insider Buying and Selling

In other Taiwan Semiconductor Manufacturing news, VP Bor-Zen Tien purchased 1,000 shares of the stock in a transaction on Sunday, March 22nd. The stock was acquired at an average price of $55.93 per share, with a total value of $55,930.00. Following the completion of the acquisition, the vice president owned 9,051 shares in the company, valued at $506,222.43. The trade was a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Several hedge funds and other institutional investors have recently modified their holdings of TSM. Van ECK Associates Corp raised its holdings in shares of Taiwan Semiconductor Manufacturing by 11.1% in the fourth quarter. Van ECK Associates Corp now owns 17,464,962 shares of the semiconductor company's stock worth $5,307,428,000 after buying an additional 1,750,824 shares during the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter valued at $495,163,000. T. Rowe Price Investment Management Inc. increased its position in shares of Taiwan Semiconductor Manufacturing by 168.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company's stock valued at $636,077,000 after acquiring an additional 1,313,917 shares during the period. SurgoCap Partners LP acquired a new position in shares of Taiwan Semiconductor Manufacturing in the 3rd quarter valued at $360,443,000. Finally, Capital Research Global Investors raised its stake in Taiwan Semiconductor Manufacturing by 66.3% in the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company's stock worth $976,821,000 after acquiring an additional 1,281,648 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Erste Group sharply raised its EPS forecasts, lifting FY2026 to $15.64 and FY2027 to $19.53 — well above consensus — which supports higher earnings expectations and a more bullish valuation outlook for TSM.
• Positive Sentiment: TSMC is accelerating 2nm capacity (reportedly up ~70%) to capture surging AI demand, a direct revenue/capacity positive for high-margin advanced-node chips. Read More.
• Positive Sentiment: Multiple outlets highlight AI demand as the main growth driver (price targets and buy ratings rising), including bullish price forecasts and commentary arguing the stock can extend recent all‑time highs. Read More.
• Positive Sentiment: Analyst and market commentary (Seeking Alpha, Motley Fool, 24/7 Wall St.) emphasize TSMC’s strong Q1 results and dominant position in AI chips, which is driving buy ratings and optimism about continued top-line momentum. Read More.
• Neutral Sentiment: TSMC completed sale of its remaining Arm stake for roughly $231M via TSMC Partners — a small one‑off cash event that modestly boosts liquidity but has limited strategic impact. Read More.
• Neutral Sentiment: Macro/market flow effects: Taiwan’s market-cap jump (TSMC a large share) and eased domestic stock caps are drawing inflows, which supports higher multiples but also increases index concentration risk. Read More.
• Negative Sentiment: Valuation and concentration cautions appear in coverage: after a >100% one‑year run and fresh highs, some analysts and articles flag stretched multiples and single‑name market concentration as downside risks if AI demand slows. Read More.

About Taiwan Semiconductor Manufacturing

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.

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