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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Research analysts at Erste Group Bank raised their FY2026 earnings per share estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will earn $16.72 per share for the year, up from their prior forecast of $16.69. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.45 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing’s FY2027 earnings at $21.61 EPS.

TSM has been the subject of a number of other reports. TD Cowen lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a report on Friday, July 17th. Needham & Company LLC upped their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Susquehanna raised their price target on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a “positive” rating in a research report on Thursday, July 16th. Bank of America boosted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Finally, Weiss Ratings raised Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 26th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Stock Performance

TSM opened at $415.68 on Monday. Taiwan Semiconductor Manufacturing has a 1-year low of $225.63 and a 1-year high of $479.00. The company has a market cap of $2.16 trillion, a price-to-earnings ratio of 29.99, a PEG ratio of 0.96 and a beta of 1.39. The company’s fifty day moving average price is $421.95 and its two-hundred day moving average price is $396.76. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

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

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fisher Asset Management LLC increased its position in shares of Taiwan Semiconductor Manufacturing by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 18,146,900 shares of the semiconductor company’s stock valued at $5,514,662,000 after acquiring an additional 313,773 shares during the last quarter. Van ECK Associates Corp boosted its position in 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 purchasing an additional 1,750,824 shares during the last quarter. Bank of America Corp DE boosted its position in Taiwan Semiconductor Manufacturing by 6.5% in the fourth quarter. Bank of America Corp DE now owns 15,902,819 shares of the semiconductor company’s stock worth $4,832,708,000 after purchasing an additional 966,926 shares during the last quarter. Coatue Management LLC grew its stake in Taiwan Semiconductor Manufacturing by 6.9% in the 4th quarter. Coatue Management LLC now owns 8,629,524 shares of the semiconductor company’s stock valued at $2,622,426,000 after purchasing an additional 556,988 shares during the period. Finally, Janus Henderson Group PLC grew its stake in Taiwan Semiconductor Manufacturing by 7.7% in the 4th quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after purchasing an additional 594,780 shares during the period. Hedge funds and other institutional investors own 16.51% of the company’s stock.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan bought 1,000 shares of the stock in a transaction dated Tuesday, August 18th. The stock was bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the completion of the acquisition, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Bor-Zen Tien purchased 1,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The shares were purchased at an average cost of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the transaction, the vice president directly owned 14,051 shares of the company’s stock, valued at $1,026,566.06. This represents a 7.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 17,662 shares of company stock worth $1,307,491 in the last quarter. 1.11% of the stock is currently owned by corporate insiders.

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 paid a $1.0854 dividend. The ex-dividend date is Thursday, December 10th. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is presently 21.43%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: Bank of America maintained a Buy rating and set a $590 price target, citing TSMC’s leadership in advanced manufacturing nodes and silicon photonics, continued AI demand and an attractive valuation. TSMC Earns Buy Rating as Analyst Sees AI-Driven Upside
• Positive Sentiment: Billionaire investor Daniel Loeb increased his TSMC position from 275,000 to 460,000 shares, a roughly 67% increase. The purchase signals institutional confidence in the company’s AI exposure, strong earnings growth and substantial capital investment. Billionaire Investor Raises TSMC Stake 67%
• Positive Sentiment: A report on Elon Musk’s planned $119 billion chip-focused facility near Houston underscores the scale of expected semiconductor and AI infrastructure spending. TSMC could benefit indirectly if the expansion increases demand for leading-edge chips, although the article does not identify a direct TSMC contract. Elon Musk Is Spending $119 Billion on a Single Building Outside Houston
• Positive Sentiment: Additional commentary describes TSMC as a leading potential long-term winner in the AI hardware race, reinforcing the view that its manufacturing scale and technology position could support sustained demand. This Semiconductor Giant Will Be the Ultimate Winner of the AI Hardware Race
• Neutral Sentiment: Coverage comparing TSMC with ASML frames both as important semiconductor beneficiaries but does not provide a new company-specific catalyst. TSMC vs. ASML
• Neutral Sentiment: Taiwan’s stock exchange chief urged investors to look beyond TSMC, noting that the company represents about two-fifths of Taiwan’s market value. The comments highlight TSMC’s importance but also the concentration of Taiwan’s market around one company. Why the Head of Taiwan’s Stock Exchange Wants You to Look Past TSMC

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.