FY2027 Earnings Forecast for TSM Issued By Erste Group Bank

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Equities researchers at Erste Group Bank upped their FY2027 earnings estimates for shares of Taiwan Semiconductor Manufacturing in a research note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will post earnings of $21.57 per share for the year, up from their previous estimate of $21.25. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.44 per share.

Several other research analysts have also issued reports on the stock. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. TD Cowen raised their price objective on Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. Bank of America lifted their target price on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Finally, DA Davidson upped their target price on Taiwan Semiconductor Manufacturing from $450.00 to $500.00 and gave the company a “buy” rating in a report on Friday, July 17th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and an average price target of $496.25.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM stock opened at $419.34 on Tuesday. The company has a market cap of $2.17 trillion, a P/E ratio of 30.26, a PEG ratio of 0.96 and a beta of 1.39. The business has a 50 day moving average of $426.67 and a two-hundred day moving average of $388.05. Taiwan Semiconductor Manufacturing has a 52 week low of $223.70 and a 52 week high of $479.00. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.13.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The business had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 39.37% and a net margin of 50.31%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TSM. Cedar Mountain Advisors LLC increased its holdings in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 30 shares in the last quarter. Quattro Advisors LLC purchased a new stake in Taiwan Semiconductor Manufacturing in the 4th quarter valued at $25,000. Hilton Head Capital Partners LLC bought a new position in Taiwan Semiconductor Manufacturing during the 4th quarter valued at $27,000. Evolution Wealth Management Inc. grew its stake in shares of Taiwan Semiconductor Manufacturing by 257.7% in the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 67 shares in the last quarter. Finally, Strategic Advocates LLC lifted its position in shares of Taiwan Semiconductor Manufacturing by 62.1% during the fourth quarter. Strategic Advocates LLC now owns 94 shares of the semiconductor company’s stock valued at $28,000 after purchasing an additional 36 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan acquired 1,000 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was bought at an average cost of $79.19 per share, with a total value of $79,190.00. Following the completion of the transaction, the vice president directly owned 5,000 shares in the company, valued at approximately $395,950. This represents a 25.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Shyue-Shyh Lin bought 2,000 shares of the firm’s stock in a transaction dated Sunday, July 19th. The stock was purchased at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the transaction, the vice president directly owned 28,269 shares of the company’s stock, valued at $2,027,169.99. The trade was a 7.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 18,312 shares of company stock worth $1,347,058 over the last quarter. 1.11% of the stock is owned by insiders.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: AI demand continues to drive exceptional sales growth. TSMC reported July revenue of approximately NT$467.58 billion ($14.5 billion), up 44.7% year over year and 5.6% from June. The result exceeded the company’s full-year growth outlook and reinforces expectations for sustained demand for advanced processors and AI accelerators. TSMC sales surge amid buoyant AI demand
• Positive Sentiment: TSMC is expanding into image sensors with Sony. The company will invest about 282 billion yen ($1.77 billion) in a joint venture with Sony to develop and manufacture next-generation image sensors. The broader project is expected to involve roughly $6.3 billion of investment, with potential applications in smartphones, vehicles, robotics and physical AI. Commercial production could begin in Japan as early as 2029. TSMC investment with Sony for image sensors
• Positive Sentiment: Potential hyperscaler orders provide additional upside. Microsoft is reportedly seeking substantially greater TSMC capacity for its Maia 300 AI chips, potentially exceeding 300,000 units and eventually reaching more than one million. Packaging and component constraints could limit the near-term benefit, but the plan highlights TSMC’s importance to custom AI-chip production. Microsoft plans Maia 300 chip reveal
• Neutral Sentiment: Bernstein analysts said CPUs could become a new growth driver as agentic AI increases demand for computing infrastructure. Multiple TSMC executives, including the CEO, CFO and COOs, also reported small open-market purchases, a modest signal of management confidence.
• Negative Sentiment: Strong results have produced a muted stock response. Investors may already expect exceptional AI growth, making further gains dependent on results that continue to exceed elevated expectations. TSMC’s premium valuation increases the risk of a pullback if growth or margins disappoint.
• Negative Sentiment: U.S. lawmakers are calling for tighter controls on advanced-chip shipments to Chinese customers. New restrictions could reduce addressable demand, increase compliance costs and add geopolitical risk for TSMC. Calls for tighter controls on advanced-chip shipments

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.