TSMC Raises Full-Year Outlook Over 30%, Boosts Capex to $52–56B
TSMC raised its full-year revenue outlook to over 30% growth and increased capital spending to the high end of $52–56 billion after first-quarter profit jumped 58% to a record $18.2 billion and projected Q2 sales of $39–40 billion. This ramp-up at Nvidia’s primary AI chip foundry should bolster supply of its GPUs to meet escalating data-centre and AI training demand.
1. TSMC Boosts Full-Year Revenue Forecast
TSMC increased its full-year revenue growth target in U.S. dollar terms to more than 30%, up from nearly 30%, reflecting surging demand for advanced AI chips.
2. Records 58% Q1 Profit, Guides $39–40B Q2 Sales
First-quarter net profit climbed 58% year-over-year to a record $18.2 billion, marking eight straight quarters of double-digit growth, with second-quarter revenue expected between $39 billion and $40 billion.
3. Capex Raised to $52–56B to Scale AI Capacity
The company said capital expenditure will sit at the high end of its prior $52 billion to $56 billion guidance as it expands wafer fab capacity to meet AI chip production needs.
4. Nvidia Supply Pipeline Strengthened by TSMC Expansion
As Nvidia’s key contract manufacturer for AI GPUs, TSMC’s increased production capacity and bullish outlook should ensure steadier GPU supply for data-centre and AI training applications.