Nvidia Orders Boost TSMC to NT$1.13 Trillion Q1 Revenue Surge
TSMC generated NT$1.13 trillion ($35.6B) in Q1 revenue, a 35% YoY increase, beating the NT$1.12T consensus, as AI chip orders from major clients including Nvidia remained resilient. Price hikes on leading-edge chips and a 45.2% YoY jump in March revenue to NT$415.2B suggest sustained demand.
1. Record Q1 Revenue Surge
TSMC generated NT$1.13 trillion in Q1 2026 revenue, up 35% year-over-year and exceeding the NT$1.12 trillion analyst consensus. Revenue for March alone reached NT$415.2 billion, marking a 45.2% increase compared with the same month last year.
2. Nvidia and Apple Orders Drive AI Demand
Strong demand for AI chips from major clients including Nvidia and Apple underpinned the record results. Orders remained resilient despite geopolitical tensions in the Middle East, highlighting the critical role of Nvidia’s AI workloads in sustaining volume.
3. Price Hikes and Margin Outlook
Price increases on TSMC's leading-edge chips contributed significantly to revenue growth, supporting a gross margin forecast of around 64%. These adjustments position TSMC to exceed its 30% annual revenue growth target in U.S. dollar terms.
4. Risk Factors and Future Investments
TSMC plans to invest up to $56 billion in new fabrication facilities outside Taiwan and in the U.S. to meet projected AI chip demand. However, ongoing regional instability poses potential logistics and supply chain challenges.