tsmc's ai-fueled surge: first-quarter revenue jumps 42%

2025-04-11 tsmc

Taipei, Friday, 11 April 2025.
Taiwan Semiconductor Manufacturing Co. (TSMC) just posted a remarkable 42% revenue increase for the first quarter, driven by booming AI applications. Revenue hit NT$839.3 billion ($25.6 billion), surpassing expectations. The surge is attributed to advance purchasing ahead of new US tariffs, but analysts are wary. Investors are now watching for potential revisions to full-year sales targets and capital expenditure plans, signaling possible concerns about future chip demand. The question remains if TSMC can sustain this growth amid global economic uncertainties.

surging revenues driven by ai and tariffs

TSMC’s first-quarter revenue surge is largely attributed to the high demand for AI server and smartphone chips [6][7]. This demand was further amplified by electronic product manufacturers stockpiling goods in U.S. warehouses before new tariffs took effect [6][8]. March revenue figures show sales reaching NT$285.96 billion, a 46.486 46.5% increase year-over-year and a 10% increase month-over-month [2][6]. The company’s Q1 revenue growth represents its fastest pace since 2022, underscoring the immediate impact of these factors [6][8].

stock market reaction

The robust revenue report triggered a positive market response. TSMC’s stock experienced a surge, with its U.S. shares climbing over 4% in after-hours trading [6]. Trading in Taiwan saw TSMC shares jump to their daily limit, closing at NT$863 per share [6]. This marked the first time in nearly 16 years that TSMC’s stock opened at its upward limit [6]. These movements reflect strong investor confidence, at least in the short term, following the revenue announcement [6].

concerns over future outlook

Despite the impressive Q1 results, some analysts are urging caution [1]. There are concerns that TSMC might revise its full-year revenue growth target, initially set in the mid-20% range [6]. These potential adjustments would reflect broader uncertainties in the global chip demand and the economic impact of newly implemented U.S. tariffs [1][6]. The tariffs, which took effect on April 9, raise concerns about their impact on demand for electronics like iPhones, potentially affecting TSMC’s revenue from major clients [6].

strategic factors and capacity

Several strategic elements are now under scrutiny. These include demand dynamics for leading-edge process nodes (N2, N3) from key customers like Apple and Qualcomm, the recovery of the N7 node, and cost pressures at TSMC’s U.S. facilities due to tariffs [6]. Also being watched are the company’s strategic relationship with Intel and confirmation of extended constraints on CoWoS capacity [6]. These factors combined will play a crucial role in shaping TSMC’s performance and market position in the coming quarters [6].

Bronnen

AI demand TSMC revenue