Tariff gloom cannot hinder the upward pace, Taiwan Semiconductor's Q1 revenue easily exceeds expectations
In the first quarter, Taiwan Semiconductor's revenue reached NT$839.25 billion (approximately USD 25.55 billion), exceeding market expectations. Benefiting from demand for artificial intelligence, Taiwan Semiconductor's stock price rose 12.29% in the U.S. stock market. Despite negative sentiment triggered by the tariff measures announced by U.S. President Trump, analysts remain optimistic about Taiwan Semiconductor's resilience, with Susquehanna analysts reaffirming their "outperform" rating. Taiwan Semiconductor's total investment in the U.S. has reached USD 165 billion
According to Zhitong Finance APP, benefiting from strong demand for artificial intelligence, the world's largest chip foundry Taiwan Semiconductor (TSM.US) announced on Thursday that its revenue for the first quarter reached NT$839.25 billion (approximately USD 25.55 billion), exceeding market expectations. Refinitiv's smart forecast, based on 19 analysts, indicated that the market had previously expected TSMC's first-quarter revenue to be NT$835.66 billion.
Yesterday, the United States announced a 90-day suspension of reciprocal tariffs on most countries, leading to a significant rise in the U.S. stock market, with TSMC's U.S. shares closing up 12.29%. As of the time of writing, the stock rose 3.70% in after-hours trading.
TSMC is a major supplier for many companies, including Apple (AAPL.US) and NVIDIA (NVDA.US). U.S. President Trump stated on Tuesday that he had informed TSMC, which has committed to building a factory in the U.S., that if the company does not establish a factory in the U.S., it would face tariffs of up to 100%.
In March of this year, TSMC announced at the White House that it would invest an additional USD 100 billion in the U.S. over the next four years to increase its chip production. With this investment, touted by the company as "the largest single foreign investment in U.S. history," TSMC's total investment in the U.S. has reached USD 165 billion.
Despite the negative sentiment in the market caused by the latest tariff measures announced by President Trump, some analysts have recently expressed optimism, pointing out that TSMC's business may be more resilient than expected.
Susquehanna analyst Mehdi Hosseini reiterated his "outperform" rating on TSMC in a report released on Tuesday. He stated, "The latest market survey shows that TSMC's wafer shipments and average selling price (ASP) trends remain stable."