TSMC revenue growth beats estimates as AI demand survives Middle East war disruption
9 Sources
[1]
TSMC's Sales Beat Estimates After War Fails to Dent AI Demand
Taiwan Semiconductor Manufacturing Co. reported a 35% increase in quarterly revenue, suggesting global AI chip demand remained intact during the first weeks of war in the Middle East. Revenue for the three months through March rose to NT$1.13 trillion ($35.6 billion), the main chipmaker for Nvidia
[2]
TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
TAIPEI, April 13 (Reuters) - TSMC, the world's largest manufacturer of advanced artificial intelligence chips, will likely notch up a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March thanks to booming demand for AI infrastructure. Analysts say that
[3]
Nvidia Partner Hon Hai's Sales Meet Estimates on Solid AI Demand
Hon Hai Precision Industry Co. reported a 29.7% rise in quarterly sales, a sign of sustained AI demand during the first weeks of war in the Middle East. Revenue for the three months ending in March grew to NT$2.13 trillion ($66.5 billion), while analysts on average were looking for NT$2.14
[4]
TSMC likely to book fourth straight quarter of record profit on insatiable AI demand - The Economic Times
TSMC, the world's largest manufacturer of advanced artificial intelligence chips, will likely notch up a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March thanks to booming demand for AI infrastructure. Analysts say that demand for Taiwan Semiconductor
[5]
Nvidia And Apple Supplier Foxconn Reports Revenue Surge Of Nearly 30% Thanks To AI Boom, Warns Of Global
AI Demand Drives Strong Revenue Growth The company said revenue reached NTD 2.13 trillion (about $66.6 billion), slightly missing analyst estimates of T$2.148 trillion. March sales alone climbed 45.57% from a year earlier to a record NTD 803.7 billion for the month. Foxconn pointed to growth in
[6]
TSMC Q1 Revenue Jumps 35% as AI Chip Demand Beats Market Forecasts
Taiwan Semiconductor Manufacturing Co. reported a 35% year-on-year rise in first-quarter revenue, beating market estimates and pointing to continued demand for AI chips. Revenue for January through March reached T$1.134 trillion, up from T$839.3 billion a year earlier. The result came in above an
[7]
TSMC's first-quarter revenue surges as AI interest propels sales beyond market forecasts
TAIPEI -- TSMC, the world's largest contract chipmaker, on Friday reported a 35 per cent surge in first-quarter revenue, beating market forecasts, thanks to unabated interest in artificial intelligence applications. January-March revenue reached T$1.134 trillion (US$35.71 billion) compared with
[8]
TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
TAIPEI, April 13 (Reuters) - TSMC, the world's largest manufacturer of advanced artificial intelligence chips, will likely notch up a fourth consecutive quarter of record earnings with a 50% surge in net profit for January-March thanks to booming demand for AI infrastructure. Analysts say that
[9]
TSMC's Q1 revenue jumps 35% y/y, beats market forecasts
(Corrects figure in paragraph 2 to 'trillion', not 'billion') TAIPEI, April 10 (Reuters) - The world's largest contract chipmaker, TSMC, reported first-quarter revenue of T$1.134 trillion ($35.71 billion) on Friday, rising 35% on the year to beat market forecasts on surging interest in artificial
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Taiwan Semiconductor Manufacturing Co. reported a 35% quarterly revenue increase to $35.6 billion, signaling that global AI chip demand remained robust during the first weeks of Middle East conflict. The chipmaker for Nvidia and Apple is expected to post its fourth straight quarter of record profit with a 50% surge in net income, driven by insatiable demand for 3-nanometre technology and advanced packaging.
TSMC Posts Strong Revenue Growth Amid Geopolitical Tensions
Taiwan Semiconductor Manufacturing Co. reported a 35% increase in quarterly revenue, reaching NT$1.13 trillion ($35.6 billion) for the three months through March, beating analyst estimates of NT$1.12 trillion
1
. March sales alone surged 45%, suggesting that strong global demand for AI remained intact despite escalating conflict in the Middle East1
. The world's largest manufacturer of advanced AI chips serves as the primary chipmaker for Nvidia Corp. and Apple Inc., positioning it at the center of the global push to build AI infrastructure.
Source: Analytics Insight
Analysts expect TSMC to report a net profit of T$542.6 billion ($17.1 billion) for the quarter, marking its fourth straight quarter of record profit with a 50% surge in net income
2
. Any profit result above T$505.7 billion would represent the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth4
. Asia's most valuable company now boasts a market capitalization of around $1.6 trillion, nearly double that of South Korean rival Samsung Electronics2
.Insatiable AI Demand Drives Advanced Technology Adoption
Demand for TSMC's 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's current production capacity
2
. Bloomberg Intelligence analyst Charles Shum calculates that gross margin can reach a record high of at least 65%, driven by sustained strong demand for 3- and 5-nanometer nodes used in AI accelerators and networking-chip production1
. The favorable appreciation of the US dollar against the New Taiwan Dollar provides a further tailwind to margins.
Source: BNN
Arthur Lai, head of technology research for Asia at Macquarie Capital, expects higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI momentum and advanced-node leadership
2
. TSMC's Taipei-listed shares have gained 28% so far this year, outperforming both its major customers and the broader market's 22% rise4
.Supply Chain Disruptions Pose Limited Threat
The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, raising concerns about supply chain disruptions
2
. However, TSMC appears well-positioned to weather geopolitical events. Galen Zeng, senior research manager at IDC, noted that "TSMC's diversified sourcing and safety stock should be sufficient to manage short-term disruptions"2
.One area of focus will be whether TSMC maintains or raises its 2026 capital spending plans, as this will reflect management's confidence in long-term AI demand
4
. The company is currently investing $165 billion to build chip factories in Arizona and has revised its plans in Japan to manufacture 3-nanometre chips there instead of focusing on more mature nodes2
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AI Server Partners Show Sustained Momentum
Hon Hai Precision Industry Co., also known as Foxconn, reported a 29.7% rise in quarterly sales to NT$2.13 trillion ($66.5 billion), with March sales climbing 45.57% year-over-year to a record NT$803.7 billion
3
5
. The growth was driven by the company's cloud and networking segment, fueled by strong demand for AI servers used in data centers5
.
Source: Bloomberg
Bloomberg Intelligence analysts Steven Tseng and Rebecca Wang note that Hon Hai's deep vertical integration and global presence offer an edge amid increasing server complexity and demand for localized production, with further upside possible from a surge in ASIC-based server projects
3
. The company has established itself as a key AI hardware player by assembling servers that house Nvidia accelerators, benefiting from the roughly $650 billion that Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp. are earmarking for AI spending this year3
.Investor Skepticism Persists Despite Strong Results
TSMC and AI customers such as Nvidia face increasing investor skepticism about whether they can maintain current growth rates
1
. After explosive sales turned Nvidia into the world's most valuable company and TSMC the most valuable company in Asia, investors are seeking assurances that booming AI spending can be sustained. Shares of Nvidia are down 1.4% this year even after the global AI chip leader delivered an outlook that beat estimates, on top of a 73% jump in quarterly revenue1
.Chairman Young Liu of Hon Hai warned about uncertainty around the business environment stemming from the Middle East crisis, noting that "it remains necessary to monitor the impact of the volatile global political and economic situation"
3
. The earnings call scheduled for 0600 GMT will provide critical insights into whether sustained, multiyear AI chip demand and strength in leading-edge nodes supports raising TSMC's long-term gross-margin target above 58%1
.References
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