TSMC posted a 30 percent rise in May revenue to NT$416.98 billion (roughly 11 billion euros), driven by sustained AI chip demand. Combined April and May sales are up around 24 percent year-on-year. CEO CC Wei told shareholders this month that chip supply will fall short of demand for years. Analysts expect Q2 sales to rise 35 percent.
LThe result needn’t surprise anyone as demand persists for AI chips from customers including Nvidia and AMD.
Analysts are watching closely: the consensus expectation is for a 35 percent increase in second-quarter sales. TSMC already delivered a record Q1 2026 result, its fourth consecutive record quarter, with first-quarter revenue rising 35 percent year-on-year.
Supply still can’t keep up
Earlier this month, CEO CC Wei told shareholders that global chip supply will fall short of demand for years to come. That view aligns with remarks from Nvidia CEO Jensen Huang, who said just days before that his company remains supply constrained.
The supply squeeze is a bit of a balancing act for some in the chip supply chain. As Techzine reported earlier this month, TSMC is deliberately avoiding sharp price increases despite the demand pressure, opting instead for long-term customer relationships and predictable growth. Broadcom flagged earlier this year that TSMC’s production lines are under visible pressure, with delays set to affect supply chains in 2026. Intel, long considered irrelevant as a foundry for top-end chips, is appearing as a potential second source for the likes of Nvidia and Apple
There’s more where that came from. Alphabet, Amazon, Meta, and Microsoft are collectively preparing to set aside $725 billion for AI-related investments this year, significantly more than previously anticipated.
Spending and guidance on the rise
In April, TSMC raised its full-year sales guidance to over 30 percent growth and said capital spending should trend toward the upper end of a forecast range of as much as US$56 billion for 2026. TSMC also unveiled new chip manufacturing nodes in April, including the A13 node targeting AI chips in 2029. The long-term production roadmap will therefore provide some semblance of stability in an ever upward curve of AI buildouts.
But TSMC’s exposure is not limited to AI. The chipmaker also serves smartphone and consumer electronics manufacturers, which are dealing with soaring memory chip costs and consumers affected by rising costs of living. These could, if an AI downturn were to occur, fill the potential void somewhat. For now, no sign of an actual threat to this growth is visible.