Taiwan Semiconductor Manufacturing Company (TSMC) reported a massive 45.2% year-on-year surge in March revenue, reaching NT$415.19 billion (approximately $13.07 billion). This performance also represented a 30.7% increase from February. The strong monthly result propelled the company's first-quarter 2026 total revenue to NT$1.134 trillion ($35.71 billion), slightly exceeding Bloomberg's consensus estimate of NT$1.12 trillion and marking a 35% increase from the NT$839.25 billion reported in Q1 2025.
The explosive growth is primarily attributed to relentless demand for artificial intelligence (AI) applications. TSMC, as the world's leading manufacturer of advanced semiconductors, supplies critical chips to major tech firms like Nvidia and Apple. The ongoing global buildout of AI data centers has sustained a high pace of orders. Reflecting market confidence in this AI-driven narrative, TSMC's stock has surged more than 140% over the past year.
TSMC's performance is a key driver behind Taiwan's record-breaking export figures. Data from Taiwan's finance ministry showed March exports surged 61.8% year-on-year to a historic high of $80.18 billion, far surpassing the 33.2% gain expected by Reuters-polled economists. Exports of electronic components, a category central to TSMC's business, rose 44.0%, while information and communication products skyrocketed 134.5%. Exports to the United States, a major market, jumped 124%.
Looking ahead, TSMC's full Q1 2026 earnings are scheduled for release on April 16. Wall Street forecasts earnings per share (EPS) of $3.27, which would be more than 50% higher than the year-ago quarter. For the full year 2026, TSMC anticipates revenue growth of around 30% in U.S. dollar terms and has outlined a capital expenditure plan of $52 to $56 billion, with 70-80% allocated to advanced technology nodes. Analysts remain bullish, with average price targets suggesting about 16% upside from current levels.
