TSMC reported first‑quarter 2026 revenue of T$1.134 trillion ($35.71 billion), a 35% year‑over‑year increase that beat analyst expectations and matched the company’s guidance range of $34.6 billion to $35.8 billion. The figure represents a jump from Q1 2025 revenue of T$839.25 billion ($25.53 billion), underscoring the company’s accelerated growth trajectory driven by AI‑related demand.
Gross margin rose to 59.9%, an increase of 1.1 percentage points from the 58.8% margin reported in Q1 2025. The margin expansion reflects higher pricing power on advanced logic wafers, particularly the 3‑nanometer and 2‑nanometer nodes, and the continued premium pricing of AI accelerators. While overseas fab costs have been a potential headwind, the company’s operational efficiencies and scale have helped offset those pressures.
The revenue surge is largely attributable to robust demand for AI chips from major customers such as Nvidia, Apple, and AMD. TSMC’s 3‑nanometer wafers were priced around $19,500 in 2026, and 2‑nanometer wafers are expected to command prices near $30,000, reinforcing the company’s pricing advantage. Capital‑expenditure plans for 2026 are projected at $52 billion to $56 billion, with 70‑80% earmarked for advanced nodes, signaling confidence in sustained AI demand.
Management indicated that the company’s guidance for the remainder of 2026 remains in line with the current outlook, reflecting continued confidence in AI‑driven growth and margin resilience. The company’s focus on expanding capacity in the United States and Japan is part of a broader strategy to diversify supply chains amid geopolitical considerations.
Analysts remain upbeat, citing strong AI demand, margin resilience, and the company’s leadership in advanced node technology as key factors supporting the positive outlook.
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