--- title: "TSMC's Q1 revenue surged 45.2% year-on-year, setting a new historical record" type: "News" locale: "en" url: "https://longbridge.com/en/news/282309454.md" description: "TSMC's revenue for the first quarter of 2026 was NT$ 415.191 billion, a year-on-year increase of 45.2%, setting a new historical high. The cumulative revenue from January to March was approximately NT$ 1,134.103 billion, a year-on-year increase of 35.1%. The gross margin is expected to be between 63% and 65%, and the operating margin is expected to be between 54% and 56%. Foreign institutions are generally optimistic about TSMC, with Morgan Stanley predicting a year-on-year revenue growth of 5-10% for the second quarter of 2026. Several institutions have raised their target prices, with JP Morgan's target price at NT$ 2,400, Citigroup at NT$ 2,800, Goldman Sachs at NT$ 2,750, and Crédit Lyonnais seeing it at NT$ 3,030" datetime: "2026-04-10T08:01:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282309454.md) - [en](https://longbridge.com/en/news/282309454.md) - [zh-HK](https://longbridge.com/zh-HK/news/282309454.md) --- # TSMC's Q1 revenue surged 45.2% year-on-year, setting a new historical record On April 10th, Taiwan Semiconductor Manufacturing Company (TSMC), the leading foundry, announced its revenue report for March 2026, with revenue reaching NT$415.191 billion, a quarter-on-quarter increase of 30.7% and a year-on-year increase of 45.2%, setting a new historical record. The cumulative revenue from January to March was approximately NT$1,134.103 billion, a year-on-year increase of 35.1%, also setting a historical record. At the fourth quarter earnings conference in 2025, TSMC provided a revenue guidance for the first quarter of this year between USD 34.8 billion and USD 35.8 billion, which, based on the midpoint, represents a quarter-on-quarter growth of 4% and a year-on-year growth of 38%. Under the exchange rate of 1 USD to 31.6 NT dollars, TSMC expects its revenue for the first quarter to be between NT$1,099.6 billion and NT$1,131.2 billion, with a year-on-year growth of 4.4%, a gross margin between 63% and 65%, and an operating margin between 54% and 56%. From the latest performance report, TSMC's actual revenue for the first quarter has already exceeded the upper limit of the previous guidance. Clearly, this is mainly due to the strong demand in the artificial intelligence and high-performance computing (HPC) markets. Foreign institutions are also optimistic about TSMC's operational performance, with several foreign firms raising their target prices for TSMC's stock. Among them, Morgan Stanley predicts that TSMC's revenue in the second quarter of 2026 may grow by 5-10% year-on-year, with a median gross margin falling in the range of 64-65%, and total capital expenditure reaching USD 52-56 billion for the year. TSMC's overall revenue is expected to have a compound annual growth rate of 25% from 2024 to 2029, while AI semiconductor growth is projected to be 55%-59% during the same period. In addition to the positive report from Morgan Stanley, JP Morgan has set a target price of NT$2,400 for TSMC, Citigroup has set a target of NT$2,800, Goldman Sachs has raised its target price expectation to NT$2,750, and Crédit Agricole has set a target as high as NT$3,030, primarily due to TSMC's strong expansion of advanced process capacity, capital expenditure, and revenue upgrades, along with improved gross margins. Industry insiders reveal that TSMC's 2nm and 3nm capacities are currently quite tight, especially as demand for Apple's M5 series chips, AMD processors, and Google and Anthropic continues to grow. It is expected that TSMC's capacity will become increasingly constrained, and how to expand capacity will be a major focus of external attention. 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