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

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for TSMC to $15.72 from $15.64, slightly above the consensus estimate of $15.25 per share. The firm also projected FY2027 EPS of $19.56.
• Wall Street remains broadly bullish on TSMC, with a consensus rating of “Buy” and an average price target of $404.29. Several firms recently reiterated positive ratings, including Barclays, which lifted its target to $470.
• TSMC continues to show strong operating momentum, reporting quarterly revenue of $30.65 billion and April revenue growth of 17.5% year over year amid sustained AI-chip demand. The company also announced a new Japan joint venture with Sony Semiconductor Solutions to expand into next-generation image sensors.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) - Analysts at Erste Group Bank boosted their FY2026 EPS estimates for Taiwan Semiconductor Manufacturing in a report released on Tuesday, May 5th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor company will post earnings of $15.72 per share for the year, up from their previous estimate of $15.64. The consensus estimate for Taiwan Semiconductor Manufacturing's current full-year earnings is $15.25 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing's FY2027 earnings at $19.56 EPS.

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

Other equities analysts have also issued research reports about the stock. DA Davidson restated a "buy" rating and set a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Wedbush restated an "outperform" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, February 11th. Zacks Research lowered shares of Taiwan Semiconductor Manufacturing from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Barclays increased their price target on shares of Taiwan Semiconductor Manufacturing from $450.00 to $470.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. Finally, Dbs Bank upgraded shares of Taiwan Semiconductor Manufacturing to a "moderate buy" rating in a research report on Friday, January 23rd. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing currently has a consensus rating of "Buy" and an average target price of $404.29.

Taiwan Semiconductor Manufacturing Stock Down 0.2%

Taiwan Semiconductor Manufacturing stock opened at $411.05 on Monday. Taiwan Semiconductor Manufacturing has a fifty-two week low of $176.47 and a fifty-two week high of $420.00. The stock has a market cap of $2.13 trillion, a PE ratio of 34.20, a price-to-earnings-growth ratio of 1.20 and a beta of 1.39. The firm's 50-day simple moving average is $361.06 and its 200 day simple moving average is $330.36. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.32 and a current ratio of 2.51.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently added to or reduced their stakes in the business. Twin City Private Wealth LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 0.3% during the first quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company's stock valued at $2,479,000 after purchasing an additional 25 shares during the last quarter. Financial Life Planners lifted its holdings in Taiwan Semiconductor Manufacturing by 3.4% during the first quarter. Financial Life Planners now owns 786 shares of the semiconductor company's stock valued at $266,000 after purchasing an additional 26 shares during the last quarter. Corus Family Wealth Advisors lifted its holdings in Taiwan Semiconductor Manufacturing by 1.1% during the first quarter. Corus Family Wealth Advisors now owns 2,401 shares of the semiconductor company's stock valued at $811,000 after purchasing an additional 26 shares during the last quarter. Lodestar Private Asset Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 0.9% during the first quarter. Lodestar Private Asset Management LLC now owns 2,896 shares of the semiconductor company's stock valued at $979,000 after purchasing an additional 27 shares during the last quarter. Finally, Mitchell Sinkler & Starr PA lifted its holdings in Taiwan Semiconductor Manufacturing by 1.9% during the fourth quarter. Mitchell Sinkler & Starr PA now owns 1,482 shares of the semiconductor company's stock valued at $450,000 after purchasing an additional 28 shares during the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, VP Bor-Zen Tien purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Sunday, March 22nd. The stock was bought at an average price of $55.93 per share, for a total transaction of $55,930.00. Following the completion of the transaction, the vice president owned 9,051 shares in the company, valued at $506,222.43. This represents a 12.42% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 1.11% of the company's stock.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 11th will be given a dividend of $0.9503 per share. The ex-dividend date is Thursday, June 11th. This represents a $3.80 annualized dividend and a yield of 0.9%. Taiwan Semiconductor Manufacturing's dividend payout ratio is presently 24.71%.

Key Taiwan Semiconductor Manufacturing News

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

• Positive Sentiment: TSMC reported April revenue of NT$410.73 billion ($13.08 billion), up 17.5% year over year, signaling that AI chip demand is still supporting strong growth. TSMC Revenue Surges 17.5% in April — What It Means for Nvidia and Other AI Chip Stocks
• Positive Sentiment: TSMC and Sony Semiconductor Solutions said they plan to form a new joint venture in Japan to develop and manufacture next-generation image sensors, expanding TSMC’s exposure to another advanced semiconductor market. Sony, TSMC plan new Japan joint venture for next-generation image sensors
• Positive Sentiment: Investor commentary has remained constructive, with articles highlighting TSMC’s strong growth relative to its valuation and its position as a key “pick-and-shovel” beneficiary of the AI buildout. This Tech Stock Is the Quiet Monopoly Nobody on Wall Street Talks About
• Neutral Sentiment: Some coverage noted that monthly revenue growth may have dipped sequentially, but the broader trend remains solid and does not appear to be changing the long-term thesis. TSMC sees strong growth as AI demand holds up
• Negative Sentiment: There is also ongoing investor attention on potential foundry competition and customer diversification efforts, which could weigh on sentiment if rivals gain share over time. TSMC: Early Signs Of Formidable Foundry Competition

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.

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