Key Takeaways
- Taiwan Semiconductor posted April revenue of NT$410.73 billion ($13.08 billion), marking a 17.5% increase compared to the same period last year.
- Monthly revenue declined 1.1% versus March, though the year-to-date performance through April shows a robust 29.9% year-over-year gain.
- The chipmaker achieved record quarterly earnings in Q1 2026 and projects Q2 revenue between $39 billion and $40.2 billion.
- Chips manufactured using 7nm technology and below represented the bulk of wafer revenue during the period.
- TSM stock has surged more than 35% in 2026; Wall Street analysts project an average target of $465, suggesting approximately 12% potential upside.
Taiwan Semiconductor Manufacturing Company delivered April revenue of NT$410.73 billion ($13.08 billion), representing a significant 17.5% increase from the NT$349.57 billion recorded in April 2025. Shares of TSM stock were down 0.9% to NT$2,290 during Friday morning trading in Taipei.
Taiwan Semiconductor Manufacturing Company Limited, TSM
The April figure represents a modest 1.1% decline from March’s NT$415.19 billion, reflecting a typical sequential pullback following several months of solid performance.
Through the opening four months of 2026, cumulative revenue reached NT$1.54 trillion, representing an impressive 29.9% year-over-year expansion. This performance demonstrates substantial momentum heading into the second quarter.
The company delivered record-breaking profitability during Q1 2026, and management expects this momentum to continue. Second-quarter revenue guidance spans $39 billion to $40.2 billion, up considerably from Q1’s $35.9 billion.
Earlier this month, TSMC increased its annual revenue forecast and indicated capital expenditures will likely approach the higher end of its guidance range—potentially reaching $56 billion. This substantial investment reflects management’s conviction in sustained AI-related demand.
Artificial Intelligence Continues to Power Growth
The surge in AI infrastructure spending has supported TSMC’s financial performance for multiple consecutive quarters. As the dominant supplier of cutting-edge semiconductors for Nvidia, Apple, and AMD, TSMC occupies a critical position in the expanding global AI ecosystem.
Chips produced using 7nm process nodes and more advanced technologies comprised the majority of April’s total wafer revenue. These advanced processes deliver superior margins and represent the areas experiencing strongest demand growth.
Regarding Nvidia in particular, the financial results indicate that hyperscale data center operators and cloud service providers continue ordering substantial quantities of Blackwell architecture GPUs and related AI processing units.
Broadcom and AMD similarly depend extensively on TSMC’s leading-edge manufacturing capabilities, making these strong revenue figures an encouraging indicator for the broader semiconductor industry.
TSMC’s revenue composition has evolved considerably in recent years. While smartphone and iPhone-related manufacturing previously dominated, AI chip production has now emerged as the primary growth engine.
Wall Street’s Current Perspective
TSM stock has rallied over 35% year-to-date, demonstrating robust market confidence in the ongoing AI semiconductor cycle.
Based on TipRanks data, TSM holds a Strong Buy consensus among analysts, supported by six Buy recommendations and one Hold rating issued within the past three months.
The consensus price target stands at $465.00, implying potential upside of approximately 12.3% from present trading levels.
Market participants continue monitoring geopolitical considerations, including U.S.-China technology export controls and supply chain vulnerabilities, which represent potential headwinds for semiconductor demand going forward.
TSMC’s second-quarter revenue projection of $39 billion to $40.2 billion represents the next critical milestone investors will be monitoring closely.
