TSMC reports forecast-beating revenue, as AI chip demand defies geopolitical tensions

By Jules Rimmer

TSMC sales rose 35% in the first quarter

Demand for semiconductor chips made by TSMC remained strong even during the first four weeks of the Iran war.

Taiwan Semiconductor Manufacturing Corp, or TSMC, reported a forecast-beating 35% jump in revenue for the first three months of the year, a sign that the Iran war is not curbing AI chip demand.

TSMC (TW:2330) on Friday reported revenue of NT$1.13 trillion ($355 billion) for the first three months of the year, just ahead of the $1.121 trillion expected by analysts polled at Visible Alpha. U.S.-listed shares of Taiwan Semi rose more than 2% in premarket trading.

What may most encourage investors is the strength of the March sales figure, which rose more than 45%, signaling an acceleration in growth during the first month of the Iran war. Markets had been concerned about the crisis prompting a letup in demand, along with worries about a disruption to production, focused in particular on a shortage of helium given the blockade in the Strait of Hormuz.

The numbers could drive confidence that the largest company by market capitalization in emerging markets will deliver an earnings beat when it reports first-quarter results next Thursday. As an industry bellwether, TSMC's results are often interpreted as a read-across for demand across the wider semiconductor and electronics supply chain. The biggest clients for its high-performance AI chips are Nvidia (NVDA) and Broadcom (AVGO).

The relative strength of the dollar against the Taiwanese currency (USDTWD) is also a moderate tailwind for TSMC as it books most of its sales in the U.S. currency.

The revenue figures will help reinforce the share price rebound TSMC has seen so far in April. Since hostilities kicked off in the Middle East, TSMC's U.S.-listed shares had fallen by almost a fifth from its all-time high of $390, notched up in February. In the past week or so, the stock has recouped most of those losses.

The stock is up 20% so far in 2026, and remains very popular among analysts with 50 or so contributing recommendations and forecasts to FactSet, and all but one recommending either overweight or buy.

-Jules Rimmer

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04-10-26 0619ET