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TSMC Q1 profits soar 58% on strong AI chip demand, beating expectations

Company Fundamentals
16 Apr 2026
Proactive Investors
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Bullish
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Taiwan Semiconductor Manufacturing Co (TSMC) reported a 58% rise in Q1 2026 net income to NT$572.48 billion ($18.16 billion), surpassing analyst estimates due to strong demand for AI chips. Revenue grew 35.1% year-over-year to NT$1.134 trillion ($35.9 billion), with advanced 3nm, 5nm, and 7nm chips making up 74% of wafer revenue. Gross margin hit a two-decade high at 66.2%, reflecting strong pricing and utilization. TSMC forecasts continued growth in Q2 with revenue between $39 billion and $40.2 billion, supported by ongoing AI demand and plans to expand 3nm capacity despite some potential cost and geopolitical risks later in the year.

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