TSMC, ASML Signal AI Strength
Analysts expect TSMC to post record profits driven by AI-chip demand from Nvidia and Apple, while ASML already beat earnings and revenue expectations. At the same time, industry commentary is probing risks from datacentre delays and new entrants like Amazon, signalling increasing investor scrutiny. ( )
Taiwan Semiconductor Manufacturing on April 16 posted another record quarter, extending a run of results that has kept the artificial intelligence chip buildout on track. (reuters.com) The company said first-quarter net profit rose 58% year over year to T$572.5 billion, or about $18.2 billion, as revenue reached T$1.134 trillion and beat analyst estimates. Customers include Nvidia and Apple, two of the biggest buyers of advanced chips used in artificial intelligence servers and smartphones. (reuters.com) One day earlier, ASML reported first-quarter net sales of €8.8 billion and net income of €2.8 billion, then raised its 2026 sales outlook to €36 billion to €40 billion. ASML makes the lithography machines that etch circuits onto silicon, including the extreme ultraviolet tools needed for the most advanced chips. (asml.com) ASML Chief Executive Officer Christophe Fouquet said on April 15 that semiconductor demand was being driven “primarily by AI-related infrastructure investment.” Reuters reported on April 16 that ASML’s outlook and TSMC’s results together pointed to another quarter of heavy spending by United States cloud companies racing to secure advanced chips. (asml.com, reuters.com) That spending starts long before a chatbot answers a question. ASML sells the tools that print chip features, TSMC turns those designs into wafers at scale, and cloud groups such as Amazon, Microsoft and Alphabet buy the output to fill data centers with artificial intelligence processors. (asml.com, reuters.com) Investors are also testing how much of that demand can turn into working capacity on schedule. Sightline Climate estimated that 30% to 50% of United States data center projects due in 2026 could be delayed or canceled, with transformer shortages and power bottlenecks slowing construction. (techspot.com) Another pressure point is whether the biggest cloud companies keep buying mostly from Nvidia or shift more work to in-house chips. In Amazon’s 2026 shareholder letter, Chief Executive Officer Andy Jassy said the company’s custom silicon businesses, including Trainium and Graviton, were already running at a “multi-billion-dollar annual revenue run rate” and “could each be a $50 billion annual revenue-rate business in the coming years.” (aboutamazon.com, fool.com) That does not mean Nvidia is being displaced today. Amazon Web Services still offers Nvidia graphics processing units alongside its own chips, and TSMC’s latest quarter shows foundry demand remains strong enough to lift both revenue and profit to records. (aboutamazon.com, reuters.com) The next test comes with company guidance and customer spending plans over the next few quarters. For now, the equipment maker and the foundry are both reporting that the artificial intelligence buildout is still producing real orders, real sales and record earnings. (asml.com, reuters.com)
