Taiwan Semiconductor Manufacturing Company (TSMC) posted a 58% increase in first-quarter net income, exceeding analyst expectations as sustained appetite for artificial intelligence chips drove the chipmaker to achieve a new quarterly profit record. This financial result signals continued momentum for the firm’s advanced semiconductor business, fueling optimism among investors focused on AI and high-performance computing.
For the first quarter ending in March, TSMC reported net profit of NT$572.48 billion, surpassing LSEG analyst consensus projections of NT$543.32 billion. Revenue totaled NT$1.134 trillion, also ahead of the NT$1.127 trillion market estimate and reflecting a 35% year-over-year increase, according to figures released previously.
Demand for cutting-edge chips remains robust, as TSMC supplies major technology companies, including Apple and Nvidia. AI-related orders, particularly those connected to advanced processors designed by Nvidia—the company’s largest customer—supported the quarter’s gains.
The business segment covering high-performance computing, including AI and 5G chips, accounted for 61% of TSMC’s overall sales in the quarter. Advanced chips produced using 7-nanometer or smaller processes represented 74% of wafer revenue, while products under 3 nanometers comprised 25% of total shipments.
TSMC’s CEO, C.C. Wei, noted during the earnings call that AI’s growing impact continues to elevate computational needs, with consistently strong signals and a favorable sales outlook from clients underpinning a multi-year industry expansion. TSMC expects 2026 revenue to grow at least 30% in US dollar terms from the previous year.
For the second quarter, management guided for revenue between $39 billion and $40.2 billion, an increase of around 10% compared to the first three months of the year.
The chipmaker indicated it does not foresee immediate disruptions to its operations from ongoing Middle East tensions, which have raised concerns about the availability of critical materials such as helium and hydrogen. TSMC noted it has multiple sources for these inputs and maintains safety inventory levels.
With sustained demand pressuring manufacturing capacity, TSMC is adding a new advanced fabrication facility in Tainan, Taiwan, as part of its global expansion initiatives. The company’s capital expenditures for the year are now projected near the upper end of its earlier estimate of $52 billion to $56 billion, reflecting confidence in order strength.
As of the company’s latest update, TSMC had outperformed major stock indices, with its shares up 35% year-to-date and its market capitalization nearing $1.7 trillion.
