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TSMC posts strong Q1 growth, reaffirms buy with robust Q2 outlook and attractive valuation

Analyst Insights
29 Apr 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Taiwan Semiconductor Manufacturing Company (TSMC) reported a strong Q1 with revenue growth of 40.6% year-over-year in USD terms and expanding profit margins, indicating solid business momentum and pricing power. The company projects continued strength in Q2, expecting 32% revenue growth and gross margins between 65.5% and 67.5%. Despite a forward price-to-earnings ratio of 25.5, which is a slight premium to the IT sector, TSMC remains an attractive buy due to AI-driven demand and U.S. supply chain expansion. This outlook supports confidence in TSMC's long-term growth potential.

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