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AI demand is still doing the heavy lifting
TSMC just dropped a quarter that looks like the financial version of a cheat code. Net profit for the January-March period jumped 58.3% year over year to a record 572.5 billion new Taiwan dollars, or about $18.1 billion, thanks to the ongoing AI chip stampede.
The numbers were very much not subtle
Revenue rose 8.4% from the prior quarter to $35.9 billion, also beating expectations. And because apparently one good quarter wasn’t enough, TSMC said it expects April-June revenue to come in between $39 billion and $40.2 billion.
- Profit: up 58.3% year over year
- Revenue: up 8.4% quarter over quarter
- Next-quarter revenue guide: $39 billion to $40.2 billion
That’s the kind of guidance that tells investors the AI build-out is still very much alive — and that TSMC, the all-important supplier to Apple and Nvidia, remains one of the cleanest ways to play it.
The Iran war is the annoying asterisk
There was a caution flag, though. TSMC said the Iran war is raising supply-chain costs and could pressure profitability by disrupting inputs like helium and other chemicals used in chipmaking. The company says it has safety stock on hand and doesn’t expect near-term operational disruption, which is corporate-speak for “we’re watching it, but don’t panic yet.”
Big picture: TSMC still looks like the beating heart of the AI hardware trade. The only thing threatening the vibe right now is a geopolitical mess that could make production a little more expensive.