TSMC Reports Massive Profit Surge, Forecasts Record Q2 Revenue Amid AI Boom
Taiwan Semiconductor Manufacturing Co posted a sharp rise in first-quarter profit. Net income jumped 58% to T$572.5 billion, or about $18.2 billion. This marked the eighth consecutive quarter of double-digit growth.
TSMC said it expects second-quarter revenue of $39 billion to $40.2 billion. That would top last year’s Q2 sales of $30.1 billion and exceed Q1 revenue of $35.9 billion. The firm noted demand from AI customers remains extremely strong.
AI demand and product mix
TSMC described the market as being in an AI megatrend. CEO C.C. Wei said AI demand is extremely robust during an analyst call. The company supplies advanced chips to major customers, including Nvidia.
Sales from 3-nanometre chips now represent about a quarter of total revenue. That is a steep rise from roughly 6% in the third quarter of 2023. High-performance chips for AI workloads are driving much of the growth.
Forecasts and market reaction
Investors reacted positively to the results and guidance. TSMC shares closed at a record T$2,085 before the detailed results were released. The stock has gained about 35% year-to-date, outpacing the broader Taipei market gain of 28%.
The company’s market value approached $1.7 trillion. That is nearly twice the market capitalisation of a major South Korean rival. Management plans to keep capital expenditure near the top of earlier guidance.
Supply chain and global expansion
The conflict in the Middle East raised concerns about supplies of helium and hydrogen. TSMC said it maintains safety stock to mitigate potential disruptions. The firm emphasized contingency planning for critical materials.
TSMC continues large-scale investments overseas. The company is spending about $165 billion to build fabs in Arizona. It also revised plans in Japan to produce 3-nanometre chips there instead of older nodes.
Outlook
The combination of rising sales and strong AI-led demand reflects a massive profit surge for the company. Management forecast suggests the next quarter could deliver record Q2 revenue. Filmogaz.com will monitor how the AI boom shapes chipmaking and capital plans going forward.
