Erste Group Bank Has Positive Outlook of TSM FY2027 Earnings

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) – Erste Group Bank upped their FY2027 earnings estimates for Taiwan Semiconductor Manufacturing in a note issued to investors on Tuesday, September 8th. Erste Group Bank analyst H. Engel now anticipates that the semiconductor company will post earnings of $21.72 per share for the year, up from their prior forecast of $21.61. The consensus estimate for Taiwan Semiconductor Manufacturing’s current full-year earnings is $16.55 per share.

Several other research firms also recently commented on TSM. Zacks Research upgraded Taiwan Semiconductor Manufacturing from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Wall Street Zen cut Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Susquehanna increased their price objective on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research note on Thursday, July 16th. Stifel Nicolaus assumed coverage on Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a “buy” rating and a $515.00 price objective for the company. Finally, Needham & Company LLC boosted their target price on shares of Taiwan Semiconductor Manufacturing from $480.00 to $530.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Three analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $523.22.

Taiwan Semiconductor Manufacturing Trading Down 0.8%

TSM stock opened at $435.63 on Thursday. Taiwan Semiconductor Manufacturing has a 1-year low of $257.75 and a 1-year high of $479.00. The firm has a market cap of $2.26 trillion, a P/E ratio of 31.43, a P/E/G ratio of 1.00 and a beta of 1.39. The business’s 50 day moving average is $419.15 and its 200-day moving average is $399.70. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last announced its quarterly earnings results on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The firm 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%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

A number of institutional investors have recently modified their holdings of the stock. Quattro Advisors LLC acquired a new position in Taiwan Semiconductor Manufacturing during the 4th quarter worth $25,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Taiwan Semiconductor Manufacturing in the 4th quarter valued at $27,000. Strategic Advocates LLC raised 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 worth $28,000 after acquiring an additional 36 shares during the last quarter. Basepoint Wealth LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the fourth quarter worth $31,000. Finally, Evolution Wealth Management Inc. raised its holdings in Taiwan Semiconductor Manufacturing by 257.7% during the 1st quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock worth $31,000 after purchasing an additional 67 shares during the last quarter. 16.51% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, VP Lipen Yuan purchased 1,000 shares of Taiwan Semiconductor Manufacturing stock in a transaction that occurred on Tuesday, August 18th. The shares were acquired at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the transaction, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. This represents a 20.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Shu-Hua Fang acquired 2,000 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were bought at an average cost of $77.09 per share, for a total transaction of $154,180.00. Following the acquisition, the senior vice president owned 8,206 shares in the company, valued at approximately $632,600.54. The trade was a 32.23% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 21,106 shares of company stock valued at $1,571,733 in the last 90 days. Insiders own 1.11% of the company’s stock.

Taiwan Semiconductor Manufacturing Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be issued a $1.0854 dividend. 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. Taiwan Semiconductor Manufacturing’s payout ratio is presently 21.43%.

Key Stories Impacting Taiwan Semiconductor Manufacturing

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

• Positive Sentiment: TSMC reported record August revenue of approximately NT$514 billion, or $16.35 billion, up more than 53% year over year and over 10% from July. The results mark a fourth consecutive month of growth and reinforce strong demand for advanced chips used in artificial intelligence applications. TSMC August revenue report
• Positive Sentiment: TSMC and ASML are advancing High-NA EUV manufacturing, with TSMC planning to introduce the technology into high-volume advanced-node production beginning in 2030. The companies also aim to develop a 12-inch photomask pilot line, supporting TSMC’s long-term technology leadership and future AI-chip capacity. ASML and TSMC High-NA EUV initiative
• Positive Sentiment: CEO Che-Chia Wei, CFO Jen-Chau Huang, and numerous other senior TSMC executives disclosed share purchases. While the transactions were relatively small, the broad insider buying provides a modest signal of management confidence in the company’s outlook. TSMC insider buying report
• Neutral Sentiment: Technical coverage said TSMC recently moved above an early buy point, and analysts maintain a predominantly bullish view with price targets above the current level. However, these signals may already be reflected in the stock’s elevated valuation and recent advance. TSMC technical and analyst coverage
• Negative Sentiment: Record August sales failed to spark a sustained rally in AI-related stocks, suggesting investors may be taking profits or demanding evidence that exceptional revenue growth will translate into further earnings upgrades. TSMC’s shares also trade at a relatively high earnings multiple after reaching near-record levels.
• Negative Sentiment: Rising crude oil prices and Treasury yields are pressuring growth-oriented technology stocks. Higher rates can reduce the value investors assign to future earnings, partially offsetting TSMC’s strong AI demand outlook. Broader market pressure from oil and Treasury yields
• Negative Sentiment: The High-NA EUV opportunity is strategically important but remains several years away for TSMC. Intel’s earlier progress with the technology may temporarily strengthen competitive concerns, even though TSMC remains a major long-term customer and manufacturing leader. Intel High-NA EUV milestone

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 leading dedicated semiconductor foundry. Founded in 1987 and headquartered in Hsinchu, Taiwan, the company pioneered the pure-play foundry business model, producing chips designed by other companies rather than developing and selling branded semiconductor products of its own.

TSMC manufactures semiconductor wafers using advanced and specialty process technologies.