TSM Stock Gets Stronger EPS Estimate from Erste Group Bank

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Investment analysts at Erste Group Bank raised their FY2026 earnings estimates for Taiwan Semiconductor Manufacturing in a research report issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will earn $16.92 per share for the year, up from their prior forecast of $16.78. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.56 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing’s FY2027 earnings at $22.26 EPS.

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

Several other brokerages also recently commented on TSM. Susquehanna increased their target price 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. Wall Street Zen lowered Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. Barclays boosted their price target on Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 6th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Finally, TD Cowen increased their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the company a “hold” rating in a research report on Friday, July 17th. Three 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, the stock presently has an average rating of “Buy” and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing Price Performance

Shares of NYSE TSM opened at $444.81 on Tuesday. The firm has a market cap of $2.31 trillion, a P/E ratio of 32.09, a PEG ratio of 1.00 and a beta of 1.37. Taiwan Semiconductor Manufacturing has a twelve month low of $266.82 and a twelve month high of $487.47. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.14. The company has a 50 day moving average of $433.89 and a 200 day moving average of $415.05.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Investors of record on Thursday, December 10th will be given a dividend of $1.0854 per share. This represents a $4.34 dividend on an annualized basis and a yield of 1.0%. This is a negative change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. The ex-dividend date is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.96%.

Insider Activity at Taiwan Semiconductor Manufacturing

In related news, VP Bor-Zen Tien bought 3,000 shares of the firm’s stock in a transaction on Tuesday, July 21st. The stock was acquired at an average cost of $74.39 per share, for a total transaction of $223,170.00. Following the purchase, the vice president owned 4,000 shares in the company, valued at approximately $297,560. This represents a 300.00% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were purchased at an average cost 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 16,043 shares of company stock worth $1,185,746 over the last quarter. Company insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Large investors have recently modified their holdings of the company. Janus Henderson Group PLC increased its holdings in Taiwan Semiconductor Manufacturing by 7.7% during the fourth quarter. Janus Henderson Group PLC now owns 8,291,884 shares of the semiconductor company’s stock valued at $2,497,638,000 after buying an additional 594,780 shares during the last quarter. Tiger Global Management LLC boosted its stake in shares of Taiwan Semiconductor Manufacturing by 49.4% during the 1st quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after acquiring an additional 1,839,600 shares during the last quarter. Invesco Ltd. boosted its stake in shares of Taiwan Semiconductor Manufacturing by 1.1% during the 4th quarter. Invesco Ltd. now owns 3,721,823 shares of the semiconductor company’s stock worth $1,131,025,000 after acquiring an additional 40,842 shares during the last quarter. Sei Investments Co. grew its position in shares of Taiwan Semiconductor Manufacturing by 11.8% during the 1st quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company’s stock valued at $875,802,000 after acquiring an additional 274,389 shares during the period. Finally, T. Rowe Price Investment Management Inc. grew its position in shares of Taiwan Semiconductor Manufacturing by 168.6% during 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. 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: Strong AI demand supports an upbeat earnings outlook. Analysts expect approximately $46.7 billion in third-quarter revenue and $23.4 billion in profit, with reports suggesting TSMC could deliver another earnings surprise. Accelerating revenue growth, price increases and expanding production capacity could provide a stronger outlook for 2027. TSMC Eyes $23.4 Billion Q3 Profit on $46.7 Billion Revenue
• Positive Sentiment: TSMC’s strategic position remains a major long-term attraction. Its leading share of advanced logic-chip manufacturing makes the company a key supplier for AI infrastructure, while growing capacity and solid margins could support substantial earnings and stock-price gains through 2030. Here’s What a $1,400 Investment in TSMC Stock Could Be Worth
• Neutral Sentiment: October 15 earnings are the immediate catalyst. Investors are focused on whether TSMC raises guidance, confirms sustained AI-chip demand and demonstrates that capacity additions can keep pace with customers’ needs. The report may also influence sentiment toward Nvidia and the broader AI semiconductor trade. Why October 15 Could Change Everything for Taiwan Semiconductor Stock
• Negative Sentiment: Valuation and execution risks are limiting enthusiasm. After a substantial AI-driven rally, investors are questioning whether TSMC’s cash generation justifies its valuation and whether heavy capital spending will translate into sufficient returns. Expectations for a strong report also increase the risk of profit-taking if guidance falls short. Can Taiwan Semiconductor Manufacturing Justify Its Price on Cash Flow?
• Negative Sentiment: Competitive and macroeconomic concerns remain. Microsoft’s push toward custom AI chips could weigh on semiconductor-sector sentiment, while inflation data, interest rates and geopolitical risks surrounding Taiwan remain potential sources of volatility. Why Nvidia Stock Is Down Around 1.6%

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), commonly known as TSMC, is a Taiwan-based semiconductor manufacturer and the world’s largest dedicated semiconductor foundry. Founded in 1987 by Morris Chang, the company pioneered the pure-play foundry model, producing chips designed by other companies rather than selling products under its own semiconductor brand.

TSMC manufactures a broad range of integrated circuits, including advanced logic chips used in high-performance computing, smartphones, automotive systems, communications equipment, and consumer electronics.