TAIWAN SEMICONDUCTOR REVENUE SURPASSES OUTLOOK; TSM-US ADVANCE 1.8% ON AI DRIVE

Taiwan Semiconductor Manufacturing Co. (TSM) reported first-quarter 2026 revenue of NT$401.3B (USD $12.7B), up 37% year-over-year, marking a record-opening month and driven by surging AI demand and maintained high稼動率 in advanced processes. On Tuesday, TSM ADR closed up over 1.8% to USD $361.90, with a conversion price of NT$2,283.59 and a 21.47%溢价. Morgan Stanley analysts said the results suggest TSM may exceed the top of its guidance, including a USD $35.8B revenue target and a 65% gross margin. The firm’s January guidance for 2026H1 USD revenue was USD $34.6B–$35.8B (median $35.2B, +4.4% YoY), gross margin 63%–65%, operating margin 54%–56%, based on a USD 1 = NT$31.6 exchange rate. Analysts note Meta (META-US), Microsoft (MSFT-US), Alphabet (GOOG-US), and Amazon (AMZN-US) plan $64.5B in AI infrastructure CAPEX this year, supporting continued strong AI demand and outperformance ahead.