TSMC Raises Outlook and Spending on AI Demand

Overview

• TSMC, which reported results Thursday, posted Q1 revenue of $35.9 billion with a 66.2% gross margin and earnings of NT$22.08 per share.
• Management guided Q2 revenue to $39.0–$40.2 billion and lifted its 2026 growth view to above 30% in U.S. dollar terms.
• The company plans capital spending near the top of its $52–56 billion range to expand 2‑nanometer and 3‑nanometer capacity in Taiwan, Arizona, and Japan, and said new fab ramps could trim gross margin by about 2–3%.
• Executives warned that supplies of helium and bromine, two key materials sourced through the Middle East, could face longer‑term disruption even though alternate near‑term sources are in place.
• Following Thursday’s report, U.S. shares fell about 3.1% and Taipei shares slipped 2.4% on Friday as investors took profits, while Needham raised its price target to $480 with a Buy rating.