Erste Group Bank Has Bullish Outlook for TSM FY2026 Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Investment analysts at Erste Group Bank lifted their FY2026 earnings per share estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor company will post earnings of $15.82 per share for the year, up from their previous forecast of $15.74. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $15.83 per share.

Several other equities analysts also recently weighed in on the stock. Susquehanna lifted their target price on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research note on Thursday. Needham & Company LLC raised their price objective on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. TD Cowen raised their price objective on shares of Taiwan Semiconductor Manufacturing from $400.00 to $440.00 and gave the stock a “hold” rating in a report on Friday. Barclays lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Weiss Ratings cut shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, July 13th. 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 company. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $490.00.

Taiwan Semiconductor Manufacturing Price Performance

NYSE TSM opened at $397.59 on Monday. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.06 trillion, a PE ratio of 28.69, a price-to-earnings-growth ratio of 0.95 and a beta of 1.36. Taiwan Semiconductor Manufacturing has a 52 week low of $223.70 and a 52 week high of $479.00. The firm’s 50-day simple moving average is $426.79 and its two-hundred day simple moving average is $378.48.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share for the quarter. Taiwan Semiconductor Manufacturing had a return on equity of 40.88% and a net margin of 50.31%.The company had revenue of $39.89 billion during the quarter.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Wednesday, September 16th will be issued a $1.1136 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 dividend on an annualized basis and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s payout ratio is currently 21.43%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan bought 1,000 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average price of $79.19 per share, with a total value of $79,190.00. Following the acquisition, the vice president owned 5,000 shares of the company’s stock, valued at approximately $395,950. The trade was a 25.00% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Bor-Zen Tien bought 1,000 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were purchased at an average cost of $76.64 per share, for a total transaction of $76,640.00. Following the acquisition, the vice president directly owned 12,051 shares in the company, valued at $923,588.64. This trade represents a 9.05% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have bought 6,857 shares of company stock valued at $512,334. 1.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TSM. Capital Research Global Investors lifted its stake in Taiwan Semiconductor Manufacturing by 66.3% during the 4th quarter. Capital Research Global Investors now owns 3,215,353 shares of the semiconductor company’s stock valued at $976,821,000 after acquiring an additional 1,281,648 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $961,000. Meridian Wealth Management LLC increased its stake in shares of Taiwan Semiconductor Manufacturing by 27.9% in the fourth quarter. Meridian Wealth Management LLC now owns 65,974 shares of the semiconductor company’s stock worth $20,049,000 after acquiring an additional 14,406 shares during the period. Y Intercept Hong Kong Ltd raised its holdings in shares of Taiwan Semiconductor Manufacturing by 273.2% during the first quarter. Y Intercept Hong Kong Ltd now owns 81,189 shares of the semiconductor company’s stock worth $27,438,000 after purchasing an additional 59,435 shares during the last quarter. Finally, Boyer Financial Services Inc. purchased a new position in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth $648,000. 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 delivered record Q2 profit and beat expectations, supported by strong demand for advanced AI chips and leading-edge nodes. Reuters article
• Positive Sentiment: The company raised its 2026 revenue growth outlook to above 40% and signaled continued AI-driven expansion, reinforcing the long-term growth story. MarketBeat article
• Neutral Sentiment: TSMC also announced an extra $100 billion investment in Arizona, expanding its U.S. manufacturing footprint but raising questions about capital intensity and margin pressure. Yahoo Finance article
• Negative Sentiment: The stock is being caught in a broader chip rout, with investors rotating out of semiconductor names amid worries that AI spending enthusiasm is cooling. Yahoo Finance article
• Negative Sentiment: Analysts and traders are flagging capex concerns, saying the surge in spending could compress free cash flow and keep the stock volatile in the near term. Benzinga article

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.