Taiwan Semiconductor Manufacturing Company told analysts on a conference call that artificial intelligence (AI) demand remains strong, with CEO C.C. Wei saying the move toward more agentic AI is increasing compute needs and token consumption.
The company, the world's largest dedicated independent semiconductor foundry, said in its earnings release that top customers include Apple, Broadcom and Nvidia, and that demand from cloud service providers continues to send "very strong signal and positive outlook."
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TSMC reported a record net profit of 572.5 billion New Taiwan dollars ($18.15 billion), up 58.3% year-over-year, and revenue rose 35% to $35.9 billion as AI infrastructure demand climbed. Gross profit margin expanded to 66.2%, beating the company’s guidance, and executives raised full-year revenue growth expectations to over 30%.
Wei said, "AI-related demand continued to be extremely robust," and added, "Moving into the second quarter of 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies." He also signalled the company is leaning toward the high end of its $56 billion capital expenditure budget to meet customer buildouts. Barclays analyst Simon Coles called it "Another positive quarter. Reiterate Overweight rating."
The recap
- TSMC reports record net profit of 572.5 billion New Taiwan dollars.
- Revenue rose 35% to $35.9 billion this quarter.
- Company plans near-high end of $56 billion capital budget.
