TSMC Sees Soaring AI Demand as Q1 Profit Jumps 58%, Raises Forecast
TSMC CEO C.C. Wei said AI-related demand remains extremely robust as workloads shift to agentic AI, boosting token consumption and leading-edge silicon needs. Q1 net profit rose 58.3% y/y to NT$572.5 billion with revenue up 35% to US$35.9 billion, and the company raised its full-year revenue growth forecast above 30%.
1. CEO Comments on AI Demand
During the April conference call, CEO C.C. Wei highlighted the transition from generative AI to agentic AI, noting that increased token consumption has driven insatiable demand for leading-edge silicon across cloud service providers.
2. Q1 Financial Performance
In the first quarter, TSMC reported net profit of NT$572.5 billion, a 58.3% year-over-year increase, while revenue rose 35% to US$35.9 billion. Gross margin expanded to 66.2%, well above the company’s guidance.
3. Forecast and Capex Plans
Management raised the full-year revenue growth forecast to above 30% and indicated plans to utilize the high end of its US$56 billion capital expenditure budget, aiming to expand capacity for AI infrastructure.
4. Market Reaction and Outlook
Shares fell 1% in premarket trading despite the strong results, as investors weighed the aggressive capex approach. TSMC’s conviction in the multiyear AI megatrend remains high, underpinning its growth outlook.