Overview
- TSMC posted Q1 2026 revenue of $35.9 billion with a record 66.2% gross margin and raised full‑year growth guidance to above 30% with capex at the high end of $52–56 billion.
- Management said AI‑driven high‑performance computing now makes up 61% of wafer revenue, while 7‑nanometer and below nodes account for 74%, keeping capacity tight and pricing firm.
- Reuters reported the company now expects the chip market to top $1.5 trillion by 2030, with AI and high‑performance computing near 55% of demand.
- Bank of America reiterated a Buy and cited execution advantages, including CoWoS advanced‑packaging yields above 98%, about 25% annual 3nm/5nm capacity growth to roughly 230,000 wafers a month by 2027, and 70% yearly N2 expansion from 2026 to 2028.
- Shares trade near records after a 37% gain this year and 114% over 12 months, as customers like Nvidia, Apple, AMD, and Qualcomm rely on TSMC as the main source for leading‑edge chips.