Taiwan Semiconductor Manufacturing Co. (TSM) has reported a 58% increase in its first-quarter profit as global demand for its artificial intelligence (A.I.) microchips remains extremely strong.
TSMC, as the company is known, announced revenue of 1.134 trillion new Taiwan dollars ($35 billion U.S.), which was ahead of the NT$1.127 trillion expected on Wall Street. Sales were up 35% from a year earlier.
In terms of profit, the company reported net income of NT$572.48 billion, which beat the NT$543.32 billion that had been expected among analysts.
It was the fourth consecutive quarter of record profits for TSMC, which manufactures about three-quarters (75%) of the world’s advanced microchips and processors.
The company makes chips used in products ranging from consumer electronics to data centres and counts companies such as Nvidia (NVDA) and Apple (AAPL) as its customers.
Management said that demand for advanced semiconductors used in artificial intelligence (A.I.) applications and models remains at record levels.
“AI-related demand continues to be extremely robust,” President and CEO of TSMC C.C. Wei said on the company’s earnings call with analysts and media.
Wei noted that TSMC remains bullish on a multi-year A.I. growth trend.
The company is forecasting full-year 2026 revenue growth of more than 30% year-over-year in U.S. dollar terms.
It also projects second-quarter revenue of $39 billion U.S. to $40.2 billion U.S., which would be a 10% sequential increase.
In the earnings call, TSMC executives said they do not anticipate any near-term impacts on its operations from recent energy and supply chain disruptions due to the Iran war.
The company added that it sources specialty chemicals and gases, including helium and hydrogen, from multiple sources around the world and has a backlog of inventory.
TSM stock has risen 147% in the last 12 months to trade at $375.10 U.S. per share.
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