TSMC revenue growth beats estimates as AI demand survives Middle East war disruption

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 Corp. and Apple Inc. said Friday in a statement. Analysts estimated NT$1.12 trillion on average. Sales in March rose 45%. The report may help quell concerns that a prolonged crisis in the Middle East will dampen demand for power-hungry AI data centers and gadgets like the iPhone. The war has put pressure on global shipping routes and energy prices, and investors are looking for clues as to whether its impact will spread to tech giants' spending plans. TSMC and AI customers such as Nvidia also face increasing skepticism that they can keep growing at current rates. 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 maintained. What Bloomberg Intelligence Says TSMC's 1Q results are likely to beat the guidance midpoint -- and consensus -- given sustained strong demand for 3- and 5-nanometer nodes used in AI accelerators and networking-chip production. Favorable appreciation of the US dollar against New Taiwan Dollar provide a further tailwind. We calculate the gross margin can reach a record high of 65% at least. The earnings-call focus will be on management's view on Android smartphone and PC demand (especially whether higher memory costs might prompt another inventory correction); If fab operations and the 2H margin could be pressured by any disruption to chemicals or energy supply, or higher related costs. Another item to watch will be if sustained, multiyear AI chip demand and strength in leading-edge nodes supports raising the long-term gross-margin target above 58%. - Charles Shum, analyst Click hereBloomberg Terminal for research TSMC is set to report full first-quarter results on April 16. Taiwan's largest company, which makes the vast majority of the world's most advanced semiconductors, is a primary beneficiary of a global race to build AI infrastructure as it serves the likes of Nvidia, Advanced Micro Devices Inc. and Broadcom Inc. Shares of TSMC have gained almost 30% this year, outperforming its major customers. But major tech companies have struggled to fulfill investors' sky-high hopes, after Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. earmarked $650 billion for AI expenditures this year. 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 revenue.

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 demand for Taiwan Semiconductor Manufacturing Co's (2330.TW), opens new tab 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's current production capacity. That's driven Asia's most valuable company, a key supplier to Nvidia (NVDA.O), opens new tab and Apple (AAPL.O), opens new tab, to new heights. ⁠Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics (005930.KS), opens new tab at around $1.6 trillion. On Thursday, TSMC is expected to report a net profit of T$542.6 billion ($17.1 billion) for the quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. An earnings call at which it will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT. Any profit result above T$505.7 billion would mark the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth. Last week, it posted a 35% year-on-year rise in first-quarter revenue, ahead of market forecasts. Looking ahead, "we ⁠expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership," Arthur Lai, head of technology research for Asia at Macquarie Capital, said in a note to clients. The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, but ⁠TSMC is seen as well-placed to weather the crisis. "TSMC's diversified sourcing and safety stock should be sufficient to manage short-term disruptions," said Galen Zeng, senior research manager at IDC. One area of focus will be whether TSMC maintains or raises ⁠its 2026 capital spending plans as that will reflect management's confidence in long-term AI demand, Zeng said. TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona. The company has also revised its ⁠plans in Japan and is now set to manufacture 3-nanometre chips there, instead of focusing on more mature nodes. TSMC's Taipei-listed shares have gained 28% so far this year, outperforming the 22% rise for the broader market (.TWII), opens new tab. ($1 = 31.7730 Taiwan dollars) Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Ben Blanchard Thomson Reuters Ben joined Reuters as a company news reporter in Shanghai in 2003 before moving to Beijing in 2005 to cover Chinese politics and diplomacy. In 2019 Ben was appointed the Taiwan bureau chief covering everything from elections and entertainment to semiconductors.

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 trillion. That's as concerns about a rush to build power-guzzling data centers are growing in the face of escalating conflict in the Middle East, which is putting pressure on global shipping routes and gas prices. What Bloomberg Intelligence Says Hon Hai -- the world's largest electronics manufacturer -- will likely strengthen its sales growth this year as AI server rack shipments continue to expand. The Taiwanese company's deep vertical integration and global presence offer an edge amid increasing server complexity and demand for localized production. Further upside is possible from a surge in ASIC-based server projects, followed by the Vera Rubin platform deployment in 2H. Click hereBloomberg Terminal for research -Steven Tseng and Rebecca Wang The Taiwanese company in March projected strong sales growth in 2026, fueled by sustained AI momentum. Chairman Young Liu warned about uncertainty around the business environment stemming from the Middle East crisis, however. Sales in the current quarter are expected to continue to grow quarter-on-quarter and year-on-year, although "it remains necessary to monitor the impact of the volatile global political and economic situation," the company said in a statement on Sunday. Hon Hai has established itself as a key AI hardware player by assembling servers that house Nvidia accelerators. That's as Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Microsoft Corp. are earmarking about $650 billion on AI spending this year, even while warnings about overcapacity and questions about how to monetize the technology linger. The Taiwanese company also derives a large portion of revenue from assembling Apple Inc.'s iPhones and MacBooks, and is in position to benefit from a strong reception for the latest iPhone 17. Like many other electronics manufacturers, Hon Hai's profitability has been facing growing challenges from an extended shortage of memory chips used in a wide range of products from smartphones to PCs and servers, though executives have said the crunch should not significantly impact demand for premium handset and computer products the company makes for major customers.

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 Manufacturing Co's 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's ⁠current production ⁠capacity. That's driven Asia's most valuable company, a key supplier to Nvidia and Apple, to new heights. Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics at around $1.6 trillion. On Thursday, TSMC is expected to report a net profit of T$542.6 billion ($17.1 billion) for the quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. An earnings call ⁠at which it will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT. Any profit result above T$505.7 billion would mark the company's highest-ever quarterly net income ⁠and its ninth consecutive quarter of profit growth. Last week, it posted a 35% year-on-year rise in first-quarter revenue, ahead of market forecasts. Looking ahead, "we expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership," Arthur Lai, head of technology research for Asia at Macquarie Capital, said in a note to clients. The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, but TSMC is seen as well-placed to weather the crisis. "TSMC's diversified sourcing and safety stock should be sufficient to manage short-term disruptions," said Galen Zeng, senior research ⁠manager at IDC. One area of focus will be whether TSMC maintains or raises its 2026 capital spending plans as that will reflect management's confidence in long-term AI demand, Zeng said. TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona. The company has also revised its plans in Japan and is now set to manufacture 3-nanometre chips there, instead of focusing on more mature nodes. TSMC's Taipei-listed shares have gained 28% so far this year, outperforming the 22% rise for the broader market. ($1 = 31.7730 Taiwan dollars)

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 its cloud and networking segment, driven by strong demand for AI servers, particularly those used in data centers. Outlook Strong, But Risks Remain Looking ahead, Foxconn said it expects continued growth in the second quarter on both a quarterly and annual basis, with AI-related products maintaining a strong trajectory. However, the company cautioned that "it remains necessary to monitor the impact of the volatile global political and economic situation." Chairman Young Liu last month highlighted geopolitical tensions, particularly conflicts in the Middle East, as a major external challenge this year, Reuters reported. The company is scheduled to report full first-quarter earnings on May 14. Price Action: At the time of writing, Hon Hai stock was seen trading 2% lower at NTD 193 ($6.03) in Taipei. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image Via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

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 LSEG SmartEstimate of T$1.125 trillion and stayed within the company's January guidance range of $34.6 billion to $35.8 billion. TSMC said first-quarter revenue reached T$1.134 trillion, or about $35.71 billion, based on its monthly sales update released on Friday. The company does not provide detailed commentary with its monthly revenue figures. However, the sales result suggested that demand for remained firm through the quarter. March revenue also rose sharply. TSMC reported monthly revenue of T$285.96 billion, up 45% from a year earlier. That monthly result helped lift total first-quarter sales above analyst expectations and kept TSMC on track ahead of its full earnings report due on April 16. The company only gives revenue guidance in US dollars, and its latest quarterly figure matched the range it set during its January earnings call. Analysts now expect TSMC's April-to-June revenue to reach a record T$1.2 trillion, according to LSEG data, after forecasts moved 2.3% higher over the last 30 days.

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 T$839.3 billion in the same period a year earlier, TSMC said in a statement without elaborating. The result topped an LSEG SmartEstimate of T$1.125 trillion drawn from 20 analysts, and was in line with TSMC's January guidance of $34.6 billion to $35.8 billion given ⁠at its last earnings call. TSMC only issues guidance in U.S. dollars. TSMC's latest record-smashing quarterly revenue comes as war in the Middle East is raising energy costs and upending global markets. That in turn threatens to disrupt the supply of production materials for semiconductors which analysts said could force companies to delay AI data centre investment. Analysts nevertheless raised their forecast for TSMC's April-June revenue by 2.3% over the last 30 days to a record T$1.2 trillion, LSEG data showed, betting on ⁠constrained capacity for advanced AI chip production to boost the firm's earnings. TSMC will report first-quarter earnings on April 16 along with an updated outlook for the current quarter and full year. The chipmaker, whose customers include Nvidia, has been a major beneficiary of advances in ⁠AI, which has more than offset a tapering-off in pandemic-led demand for chips used in consumer electronics such as tablet computers. Its Taipei-listed shares have gained 29 per cent this year versus a ⁠rise of 22 per cent in the benchmark share price index. The stock closed up 2.3 per cent on Friday ahead of its sales announcement. Compatriot Foxconn, the world's largest contract ⁠electronics maker and Nvidia's biggest server maker, has also reported bumper first-quarter sales with an on-year rise of 30 per cent.

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 demand for Taiwan Semiconductor Manufacturing Co's 3-nanometre technology to produce AI chips and its advanced packaging technology continues to outstrip the firm's current production capacity. That's driven Asia's most valuable company, a key supplier to Nvidia and Apple, to new heights. Its market capitalisation is now nearly double that of South Korean rival Samsung Electronics at around $1.6 trillion. On Thursday, TSMC is expected to report a net profit of T$542.6 billion ($17.1 billion) for the quarter, according to an LSEG SmartEstimate compiled from 19 analysts. SmartEstimates place greater weight on forecasts from analysts who are more consistently accurate. An earnings call at which it will provide second-quarter and updated full-year guidance is scheduled for 0600 GMT. Any profit result above T$505.7 billion would mark the company's highest-ever quarterly net income and its ninth consecutive quarter of profit growth. Last week, it posted a 35% year-on-year rise in first-quarter revenue nL6N40T0G0, ahead of market forecasts. Looking ahead, "we expect higher quarter-on-quarter revenue growth guidance for the second quarter of 2026, driven by sustained AI demand and advanced-node leadership," Arthur Lai, head of technology research for Asia at Macquarie Capital, said in a note to clients. The war in the Middle East threatens to disrupt the supply of production materials for semiconductors such as helium and neon, but TSMC is seen as well-placed to weather the crisis. "TSMC's diversified sourcing and safety stock should be sufficient to manage short-term disruptions," said Galen Zeng, senior research manager at IDC. One area of focus will be whether TSMC maintains or raises its 2026 capital spending plans as that will reflect management's confidence in long-term AI demand, Zeng said. TSMC is investing $165 billion to build chip factories in the U.S. state of Arizona. The company has also revised its plans in Japan and is now set to manufacture 3-nanometre chips there, instead of focusing on more mature nodes. TSMC's Taipei-listed shares have gained 28% so far this year, outperforming the 22% rise for the broader market. ($1 = 31.7730 Taiwan dollars) (Reporting by Wen-Yee Lee and Ben Blanchard; Editing by Edwina Gibbs)

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 intelligence (AI) applications. January-March revenue of T$1.134 trillion compared with T$839.3 billion in the year earlier period. The brief statement gave no other details. The results topped an LSEG SmartEstimate of T$1.125 billion from 20 analysts, and was in line with TSMC's January guidance of $34.6 billion to $35.8 billion on its last earnings call. TSMC only gives guidance in U.S. dollars. TSMC will report full first-quarter earnings on April 16, including an updated outlook for the current quarter and the full year. The company, whose customers include Nvidia, has been a major beneficiary of advances in AI, which has more than offset a tapering-off in pandemic-led demand for chips used in consumer electronics like tablets. TSMC's Taipei-listed shares have gained 29% this year, versus a rise of 22% in the benchmark index. Its shares closed up 2.3% on Friday. Taiwan's Foxconn, the world's largest contract electronics maker and Nvidia's biggest server maker, has also reported bumper sales, with an on-year rise of 30% in first-quarter revenue. ($1=31.7560 Taiwan dollars) (Reporting by Ben Blanchard, Faith Hung and Wen-Yee Lee; Editing by Christian Schmollinger and Clarence Fernandez)