Key Stats for Taiwan Semiconductor Stock
- YTD price change for Taiwan Semiconductor stock: 16%
- $TSM Share Price as of Apr. 17: $371
- 52-Week High: $390
- $TSM Stock Price Target: $447
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What Happened?
Taiwan Semiconductor (TSM) stock delivered a standout quarter.
- TSMC reported a 58% jump in Q1 net income to NT$572.48 billion, beating estimates of NT$543.32 billion.
- Revenue came in at NT$1.134 trillion, also ahead of expectations.
- It marked the fourth consecutive quarter of record profits.
- AI demand is the clear driver.
- CEO C.C. Wei said on the earnings call that AI-related demand “continues to be extremely robust.”
- The shift from basic AI queries to more complex agentic AI is pushing chip demand even higher.
- TSMC’s high-performance computing division, which covers AI and 5G chips, made up 61% of revenue in the quarter.
- Advanced chips under 7 nanometers accounted for 74% of total wafer revenue.
Regarding guidance,
- For Q2, TSMC guided revenue of $39 billion to $40.2 billion — a 10% sequential increase.
- Full-year 2026 revenue is now expected to grow above 30% in US dollar terms.
- Capital expenditure was revised to the high end of the $52 billion to $56 billion range as the company accelerates capacity expansion.
Despite the strong numbers, Taiwan Semiconductor stock faces a few headwinds.
- The Middle East conflict is creating uncertainty around energy and supply chain inputs like helium and hydrogen.
- TSMC said it doesn’t expect near-term disruption, but the risk is being watched closely.
- The company also flagged that memory price increases could soften demand in price-sensitive markets like PCs and smartphones.
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What the Market Is Telling Us About Taiwan Semiconductor Stock
Taiwan Semiconductor stock often sells off after strong earnings when guidance doesn’t deliver a major upside surprise. The Q2 forecast was solid but not dramatically above expectations, which may explain the muted reaction.
The bigger picture for Taiwan Semiconductor stock remains compelling. Chip supply is still running well below demand.
TSMC is adding new fabs in Taiwan, Arizona, and Japan. And AI spending from hyperscalers shows no signs of slowing.
Analysts covering Taiwan Semiconductor stock note that the sold-out environment across leading-edge capacity could persist well into 2027.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
