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

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Research analysts at Erste Group Bank increased their FY2026 earnings per share estimates for shares of Taiwan Semiconductor Manufacturing in a research note issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will post earnings per share of $16.92 for the year, up from their prior estimate of $16.78. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.60 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 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 firm had revenue of $39.89 billion during the quarter.

TSM has been the subject of several other reports. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a report on Thursday, July 16th. Bank of America raised their target price on shares of Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research note on Wednesday, June 24th. Barclays lifted their target price on shares of Taiwan Semiconductor Manufacturing from $650.00 to $665.00 and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Zacks Research raised shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Finally, Citigroup reissued a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 7th. Three 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. Based on data from MarketBeat, Taiwan Semiconductor Manufacturing presently has a consensus rating of “Buy” and a consensus price target of $524.89.

Taiwan Semiconductor Manufacturing Trading Down 3.2%

NYSE:TSM opened at $430.69 on Tuesday. Taiwan Semiconductor Manufacturing has a 12 month low of $266.82 and a 12 month high of $487.47. The firm has a market cap of $2.23 trillion, a price-to-earnings ratio of 31.07, a P/E/G ratio of 0.92 and a beta of 1.37. 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’s 50 day moving average is $434.77 and its 200-day moving average is $416.47.

Taiwan Semiconductor Manufacturing Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a dividend of $1.0854 per share. This represents a $4.34 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. This is a drop from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $1.1136. Taiwan Semiconductor Manufacturing’s payout ratio is 24.75%.

Insiders Place Their Bets

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 350 shares of the stock in a transaction on Tuesday, August 18th. The shares were purchased at an average price of $73.58 per share, with a total value of $25,753.00. Following the acquisition, the vice president directly owned 2,000 shares of the company’s stock, valued at $147,160. This represents a 21.21% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were acquired at an average price of $73.06 per share, for a total transaction of $73,060.00. Following the completion of the transaction, the vice president owned 14,051 shares in the company, valued at $1,026,566.06. This represents a 7.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 16,043 shares of company stock worth $1,185,746 over the last 90 days. Corporate insiders own 1.11% of the company’s stock.

Institutional Trading of Taiwan Semiconductor Manufacturing

Large investors have recently added to or reduced their stakes in the company. Cooper Financial Group lifted its position in Taiwan Semiconductor Manufacturing by 0.3% during the 3rd quarter. Cooper Financial Group now owns 6,313 shares of the semiconductor company’s stock worth $2,880,000 after buying an additional 22 shares in the last quarter. Dickmeyer Boyce Financial Management Inc. increased its holdings in Taiwan Semiconductor Manufacturing by 0.7% during the third quarter. Dickmeyer Boyce Financial Management Inc. now owns 3,459 shares of the semiconductor company’s stock worth $1,578,000 after buying an additional 23 shares during the last quarter. Plan A Wealth LLC grew its position in shares of Taiwan Semiconductor Manufacturing by 0.9% in the 3rd quarter. Plan A Wealth LLC now owns 2,735 shares of the semiconductor company’s stock valued at $1,248,000 after acquiring an additional 24 shares during the period. Twin City Private Wealth LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.3% during the 1st quarter. Twin City Private Wealth LLC now owns 7,315 shares of the semiconductor company’s stock worth $2,479,000 after purchasing an additional 25 shares during the last quarter. Finally, Graves Light Lenhart Wealth Inc. raised its holdings in shares of Taiwan Semiconductor Manufacturing by 3.4% in the 2nd quarter. Graves Light Lenhart Wealth Inc. now owns 752 shares of the semiconductor company’s stock valued at $359,000 after purchasing an additional 25 shares during the period. 16.51% of the stock is owned by institutional investors.

Taiwan Semiconductor Manufacturing News Roundup

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

• Positive Sentiment: TSMC’s September revenue reportedly increased 54.6% year over year, while July–September revenue exceeded the high end of management’s guidance even after conversion into U.S. dollars. The performance reinforces expectations for continued strength in advanced AI chip manufacturing. TSMC Monthly Revenue Analysis
• Positive Sentiment: Analysts expect robust high-performance computing revenue, driven by hyperscalers and other major customers purchasing AI chips. JPMorgan and Citigroup reportedly see additional revenue growth even after TSMC’s record third-quarter sales. What Analysts Are Watching With TSMC Results
• Positive Sentiment: Several analysts have raised their fiscal 2026 and 2027 EPS estimates, reflecting confidence in TSMC’s pricing power, advanced-node leadership and expanding AI demand. TSM Analyst Estimates
• Neutral Sentiment: The key issue for Thursday’s report is whether gross margins, capital spending and forward guidance can justify TSMC’s elevated AI valuation. Revenue growth is already widely anticipated, so investors may focus more on profitability and capacity expansion plans. TSMC Earnings Swing and AI Premium
• Neutral Sentiment: TSMC is also involved in a roughly $2 billion agreement for GlobalFoundries to manufacture U.S. silicon interposers, supporting AI-chip packaging and supply-chain diversification, although the financial impact for TSMC is not yet clear. GlobalFoundries Secures New York Fab Funding
• Negative Sentiment: Options activity and historical trading patterns suggest investors expect volatility and a possible post-earnings decline. TSMC is testing its 50-day moving average, indicating technical pressure ahead of the catalyst. Barchart TSM Earnings Outlook
• Negative Sentiment: Some investors are taking profits across semiconductor stocks, while bear investor Michael Burry has warned that AI infrastructure spending may leave chip stocks overpriced if customers cannot generate sufficient returns. Michael Burry Bets Against Chip Stocks

About Taiwan Semiconductor Manufacturing

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.