Taiwan Semiconductor Manufacturing Co posted a 58% jump in first-quarter profit to a record T$572.5 billion on April 16, beating market expectations and underscoring how demand for AI chips is still outrunning supply. The result gave investors fresh proof that the chipmaker’s momentum has not slowed.
TSMC’s net profit for January-March came in above the LSEG SmartEstimate of T$543.3 billion drawn from 19 analysts, and marked the company’s eighth straight quarter of double-digit growth. The company’s Taipei-listed shares had closed up 0.2% at a record T$2,085 before the earnings release, putting its market value at around $1.7 trillion and leaving the stock up 35% so far this year, ahead of the broader market’s 28% gain.
The profit follows a 35% year-on-year rise in first-quarter revenue last week and reflects the company’s grip on the most advanced chips in the industry. Revenue from its 3-nanometre technology accounted for a quarter of sales, up from 6% in the third quarter of 2023, as demand for that process and for advanced packaging continued to exceed TSMC’s current production capacity.
That demand matters because TSMC is the world’s main producer of advanced AI chips and a major supplier to Nvidia, while also serving Apple. The company said in January that capital spending this year would reach between $52 billion and $56 billion, and it is pressing ahead with a $165 billion buildout of chip factories in Arizona. It has also revised its plans in Japan and is now set to manufacture 3-nanometre chips there.
The tension for investors is not whether TSMC can sell what it makes. It is whether it can add capacity fast enough to keep up with a customer list that still wants more. For now, tsm stock is being priced as if the answer stays yes.