- TSMC profits hit NT$360B, up 40%, with EPS beating estimates at NT$13.81.
- Revenue surges 28% to NT$839.3B; CoWoS utilization at 90% from Nvidia/AMD.
- Gross margins reach 54.4%; USD 30B capex for 2026 expansions planned.
TSMC profits hit a record NT$360 billion (USD 11 billion) in Q1 2026, reported April 13—the fourth straight record quarter. Revenue surged 28% year-over-year to NT$839.3 billion (USD 25.6 billion), driven by AI chip demand from Nvidia and AMD. Reuters.
Q1 Financial Highlights
- Profits up 40% to NT$360B; EPS NT$13.81 beats NT$13.50 estimates.
- Revenue +28% to NT$839.3B; AI segments over 50% of revenue.
- Gross margins 54.4%, +1.3pp from Q4 2025, +4pp YoY.
TSMC leads advanced nodes as AI infrastructure demand explodes.
AI Powerhouses Fuel Surge
Nvidia claimed 50% of high-performance computing revenue, doubling H100/Blackwell GPU orders on 4nm process. Yields exceeded 70%, per TSMC filings, enabling scale. AMD ramped MI300X accelerators on 5nm, growing data center share.
Broadcom delivered custom ASICs for Google TPUs; Meta/Microsoft increased CoWoS packaging. AI sales jumped 60% QoQ, TSMC filings show. JP Morgan analyst Harlan Sur raised price target to NT$1,200 (USD 37) on April 12. "AI capex shows no signs of slowing; demand outstrips supply," Sur noted.
Concentration underscores TSMC's AI supply chain dominance; CoWoS utilization hit 90%.
Earnings Crush Consensus
Net profits rose 40% from Q4 2025; EPS NT$13.81 topped NT$13.50 consensus from 25 analysts. Gross margins improved to 54.4% from 53.1% on 3nm/4nm mix shift.
OpEx rose 15% to NT$120B for 2nm R&D and expansions. FCF reached USD 8.5B, funding returns. Bloomberg confirmed beat April 18; shares surged 5% pre-market in Taipei, adding NT$500B market cap.
TSMC beat Samsung's flat Q1 and Intel losses, holding 60% foundry share per TrendForce.
USD 30B Capex Powers 2026 Ramp
Capex hits USD 30B, up 20%, targeting 2nm production. Arizona Fab 21 starts 2nm high-volume manufacturing H2 2026, bolstering U.S. chains.
Japan Kumamoto and Germany Dresden fabs add 20% capacity. CoWoS triples to 70,000 wafers monthly by year-end, easing bottlenecks. Needham's Charles Shi forecasts 25% CAGR through 2028. "Supply relief trails AI hyperscaler demand," Shi said April 13.
Moves aim at USD 100B AI silicon revenue by 2027, per earnings calls.
Geopolitics, Competition, Outlook
USD 65B U.S. fabs cut China revenue to 10%. Intel's 18A looms, but Samsung 2nm yields lag below 50%, per trackers.
Financial Times detailed expansions. Citi's Jordan Poole limits multiples at 20x forward earnings: "Geopolitics adds volatility, but AI tailwinds prevail." Q2 guide: USD 28-29B (+30%); FY 25% growth. Next earnings July 17.
TSMC profits signal enduring AI boom; stock at 18x forward earnings versus Nasdaq semis.
