Research Analysts Offer Predictions for TSM FY2026 Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Equities research analysts at Erste Group Bank increased their FY2026 earnings estimates for Taiwan Semiconductor Manufacturing in a research report issued to clients and investors on Friday, June 5th. Erste Group Bank analyst H. Engel now expects that the semiconductor company will earn $15.76 per share for the year, up from their prior forecast of $15.72. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $15.29 per share. Erste Group Bank also issued estimates for Taiwan Semiconductor Manufacturing’s FY2027 earnings at $19.78 EPS.

Several other research firms have also recently weighed in on TSM. DA Davidson reiterated a “buy” rating and issued a $450.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, April 17th. Needham & Company LLC increased their target price on shares of Taiwan Semiconductor Manufacturing from $410.00 to $480.00 and gave the company a “buy” rating in a research note on Thursday, April 16th. Wedbush reiterated an “outperform” rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, February 11th. Weiss Ratings upgraded shares of Taiwan Semiconductor Manufacturing from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, March 20th. Finally, Zacks Research cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $404.29.

Taiwan Semiconductor Manufacturing Stock Down 4.5%

TSM stock opened at $408.51 on Thursday. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.49 and a quick ratio of 2.31. The company has a 50-day moving average of $393.77 and a two-hundred day moving average of $351.18. Taiwan Semiconductor Manufacturing has a 52-week low of $206.20 and a 52-week high of $450.16. The stock has a market capitalization of $2.12 trillion, a price-to-earnings ratio of 33.99, a price-to-earnings-growth ratio of 1.25 and a beta of 1.38.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last released its quarterly earnings results on Tuesday, February 10th. The semiconductor company reported $3.11 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 46.97% and a return on equity of 36.81%. The company had revenue of $30.65 billion during the quarter.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSM. Tiger Global Management LLC lifted its stake in Taiwan Semiconductor Manufacturing by 49.4% during the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company’s stock worth $1,880,717,000 after purchasing an additional 1,839,600 shares during the period. Van ECK Associates Corp lifted its stake in Taiwan Semiconductor Manufacturing by 11.1% during 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 period. Life Cycle Investment Partners Ltd bought a new position in Taiwan Semiconductor Manufacturing during the fourth quarter worth about $495,163,000. T. Rowe Price Investment Management Inc. lifted its stake in Taiwan Semiconductor Manufacturing by 168.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,093,115 shares of the semiconductor company’s stock worth $636,077,000 after purchasing an additional 1,313,917 shares during the period. Finally, SurgoCap Partners LP bought a new position in Taiwan Semiconductor Manufacturing during the third quarter worth about $360,443,000. Institutional investors own 16.51% of the company’s stock.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Tzu-Sou Chuang sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $69.83, for a total transaction of $13,966,000.00. Following the completion of the transaction, the vice president owned 2,495,165 shares in the company, valued at $174,237,371.95. This trade represents a 7.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Bor-Zen Tien purchased 2,000 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were acquired at an average price of $69.91 per share, with a total value of $139,820.00. Following the purchase, the vice president owned 11,051 shares of the company’s stock, valued at approximately $772,575.41. This trade represents a 22.10% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have acquired 3,496 shares of company stock valued at $229,407. Corporate insiders own 1.11% of the company’s stock.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Wednesday, September 16th will be paid a $1.1136 dividend. The ex-dividend date is Wednesday, September 16th. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. This represents a $4.45 annualized dividend and a dividend yield of 1.1%. Taiwan Semiconductor Manufacturing’s dividend payout ratio is 25.04%.

Key Headlines Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported May revenue of NT$416.98 billion, up about 30% year over year, reinforcing that demand tied to AI and high-performance computing remains strong. Management also indicated sales are tracking toward the company’s second-quarter target. Article Title
• Positive Sentiment: Commentary this week continued to highlight TSMC as a key AI beneficiary, with articles pointing to strong demand for advanced chipmaking and packaging as its 2nm roadmap progresses. Article Title
• Positive Sentiment: CEO Che-Chia Wei disclosed a small open-market purchase of TSM shares, a modest signal of management confidence. Article Title
• Neutral Sentiment: Some market coverage noted that TSMC’s strong revenue growth was not enough to fully offset broader semiconductor weakness and a sector-wide risk-off mood. Article Title
• Neutral Sentiment: Investors are also debating TSMC’s valuation versus its AI-driven growth, suggesting the stock may need continued execution to justify further upside. Article Title
• Negative Sentiment: Taiwan is considering tighter export controls on advanced AI chips to China, which could limit some of TSMC’s future sales opportunities and raise regulatory uncertainty. Article Title
• Negative Sentiment: U.S. lawmakers are pushing for stricter rules on contract chipmakers serving Chinese firms’ overseas units, adding another export-control headwind for TSMC. Article Title

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.