TSMC posts record revenue again as AI chip demand shows no sign of slowing
The world's largest chipmaker beat analyst forecasts with a 35% year-over-year rise, even as the Iran war raised supply chain concerns
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A record-breaking first quarter saw Taiwan Semiconductor Manufacturing Co. generate 1.13 trillion new Taiwan dollars ($35.6 billion) in revenue, topping the 1.12 trillion new Taiwan dollar consensus among analysts by a margin that translated to a 35% year-on-year gain.
The figures suggest AI chip orders stayed resilient through the Iran war's opening weeks, with the conflict's onset coinciding with the quarter's early stretch, according to MarketWatch. TSMC $TSM's U.S.-listed stock rose more than 2% in pre-market trading after the report.
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Revenue for the month of March reached 415.2 billion new Taiwan dollars, reflecting a 45.2% jump compared with the same month a year earlier, CNBC reported.
Orders flowing from major clients including Apple $AAPL and Nvidia $NVDA have underpinned the strong performance, though questions remain over how prolonged Middle East instability could affect logistics and future purchasing. Price increases on TSMC's leading-edge chips have also contributed meaningfully; SemiAnalysis analyst Sravan Kundojjala described the hikes as a "big factor" in the revenue outperformance, according to CNBC. Kundojjala put his gross margin forecast at 64% and said the chipmaker is on track to blow past its stated 30% annual growth target.
Memory shortages weighed on demand from smartphone and PC customers, but AI-related orders picked up the slack, Kundojjala said.
Chip production at TSMC spans an enormous range of end uses, stretching from everyday gadgets to large-scale data center hardware, positioning the company as one of the primary winners as capital floods into AI buildout. Few manufacturers anywhere in the world can match its capabilities at the leading edge of semiconductor fabrication.
The company reported 35% profit growth in the fourth quarter of 2025, its eighth consecutive quarter of year-over-year growth. At that time, TSMC said it planned to spend up to $56 billion on additional factories outside of Taiwan and in the U.S. to keep pace with demand. CEO C.C. Wei said those spending decisions were made after consulting with major customers and assessing projected AI chip demand. TSMC's annual revenue was forecast to grow 30% in U.S. dollar terms for 2026.
Monthly disclosures from TSMC carry few details beyond the top-line numbers, with margin data reserved for quarterly earnings calls.