TSMC Q1 beats

Taiwan Semiconductor Manufacturing on April 16 posted a first quarter that beat Wall Street forecasts on both profit and sales, extending its record run. (investor.tsmc.com, cnbc.com) The company reported revenue of $35.9 billion, above its own guidance range of $34.6 billion to $35.8 billion, with gross margin at 66.2% and operating margin at 58.1%. Net income reached NT$572.48 billion, and diluted earnings were NT$22.08 per share, or $3.49 per American depositary receipt. (investor.tsmc.com, techpowerup.com) Analyst expectations compiled by LSEG had pointed to NT$1.127 trillion in revenue and NT$543.32 billion in net income. TSMC came in at NT$1.134 trillion in revenue and said first-quarter profit rose 58% from a year earlier. (cnbc.com, reuters.com) TSMC sits at the center of the artificial intelligence chip supply chain because it manufactures processors designed by companies including Nvidia and Apple. Chief Executive C.C. Wei said on the earnings call that “AI-related demand continues to be extremely robust,” and the company raised its 2026 revenue growth outlook to more than 30% in U.S. dollar terms. (cnbc.com, finance.yahoo.com) The mix of chips in the quarter shows where that demand is landing. TSMC said advanced process technologies of 7 nanometers and below accounted for 74% of wafer revenue, and CNBC reported advanced chips were about 75% of wafer revenue. (marketbeat.com, cnbc.com) TSMC also guided for another step up in the current quarter, forecasting second-quarter revenue of $39.0 billion to $40.2 billion and gross margin of 65.5% to 67.5%. The first-quarter beat and the second-quarter guide both landed above the company’s prior seasonal pattern, when chip demand often softens after year-end launches. (investor.tsmc.com, finance.yahoo.com) The report also arrived as investors were testing whether the semiconductor rally could hold through another earnings season. CNBC reported that TSMC and ASML both delivered strong results this week, but their stocks fell, a sign that expectations across the chip sector had already climbed sharply. (cnbc.com, morningstar.com) TSMC said it did not expect near-term operational disruption from the recent Middle East conflict, even as executives acknowledged concerns about energy supplies and manufacturing materials such as helium and hydrogen. For now, the company’s numbers showed that demand for the most advanced chips remained strong enough to push revenue, margins and guidance higher at the same time. (cnbc.com, investor.tsmc.com)