TSMC Q1 sales top estimates on surging AI demand ahead of U.S. tariffs
Apr. 10, 2025 3:23 AM ET
By: Preeti Singh, SA News Editor
Taiwan Semiconductor Manufacturing (NYSE: TSM) reported a nearly 42% surge in Q1 revenue, fueled by strong demand for AI servers and smartphones ahead of looming U.S. tariffs.
First-quarter revenue totaled NT$839.25 billion ($25.6 billion), up 41.6% compared to the same period in 2024, marking the company’s fastest pace of growth since 2022. Analysts on average expected around NT$830.5 billion, as per Bloomberg.
March revenue also rose 46.5% Y/Y to approximately NT$285.96 billion as electronics makers had built up inventories in U.S. warehouses, preparing for possible trade disruptions.
The results come amid rising concerns that tariffs could dampen demand for electronics like iPhones. Over the weekend, U.S. consumers rushed to buy Apple’s flagship device, worried that prices could rise to offset the added costs.
In March, TSMC CEO C.C. Wei and President Donald Trump jointly unveiled a $100 billion expansion in U.S. chipmaking investments, supporting the White House’s push to reshore manufacturing. Trump attributed the increased commitment to the impact of higher tariffs.
Taiwan Semiconductor (NYSE: TSM), whose customers include Apple ( AAPL), Nvidia ( NVDA), and AMD ( AMD), will report its full Q1 earnings on April 17. Investors will be watching for a possible downward revision to the full-year sales target and capital expenditure plans, as the outlook for global chip demand weakens amid uncertainty following new U.S. tariffs imposed on April 9, Bloomberg Intelligence said.
The company expects net revenue in the range of US$25B-US$25.8B ( consensus estimate: $25.52B) for 1Q25, with a gross margin of 57%-59%. |
