TSMC Stock: April Revenue Jumps 17% on AI Chip Demand – Time to Buy?

TLDR

• TSMC reported April revenue of NT$410.73 billion ($13.08 billion), up 17.5% year-over-year.
• Revenue dipped 1.1% from March, but first four months of 2026 are up 29.9% year-on-year.
• TSMC posted a record-high profit in Q1 2026 and forecasts Q2 sales of $39B–$40.2B.
• Advanced chips on 7nm or smaller accounted for the majority of wafer revenue.
• TSM stock has gained over 35% year-to-date; average analyst price target is $465, implying ~12% upside.

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TSMC reported April revenue of NT$410.73 billion ($13.08 billion), a 17.5% jump from NT$349.57 billion in April 2025. TSM stock was trading 0.9% lower at NT$2,290 on Friday morning in Taipei.

Taiwan Semiconductor Manufacturing Company Limited, TSM

The monthly figure slipped 1.1% from March’s NT$415.19 billion, a small sequential dip after a strong run.

For the first four months of 2026, cumulative revenue hit NT$1.54 trillion, up 29.9% year-on-year. That’s a strong start to the year by any measure.

TSMC also posted a record-high profit in Q1 2026, and it isn’t slowing down. The company is guiding for Q2 revenue of between $39 billion and $40.2 billion, up from $35.9 billion in Q1.

Earlier in April, TSMC raised its full-year sales outlook and said capital spending is likely to trend toward the upper end of its projected range — up to $56 billion. That signals the company is putting real money behind its confidence in AI demand.

AI Demand Driving the Numbers

The AI spending boom has been a tailwind for TSMC for several quarters now. As the primary manufacturer of advanced chips for Nvidia, Apple, and AMD, TSMC sits at the center of the global AI infrastructure build-out.

Advanced chips built on 7nm process technology or smaller made up the majority of total wafer revenue in April. That’s where the margins are, and it’s where demand is coming from.

For Nvidia specifically, the results suggest hyperscalers and cloud companies are still placing large orders for Blackwell platform GPUs and other AI accelerators.

Broadcom and AMD also rely heavily on TSMC’s advanced manufacturing capacity, so the strong revenue numbers are a broadly positive signal for the semiconductor sector.

TSMC’s business mix has shifted over recent years. Smartphone and iPhone-related production used to be the main driver, but AI chip orders have now taken the lead.

What Analysts Are Saying

TSM stock has climbed more than 35% year-to-date, reflecting strong investor confidence in the AI chip cycle.

According to TipRanks, TSM carries a Strong Buy consensus rating, based on six Buy ratings and one Hold over the past three months.

The average analyst price target sits at $465.00, which implies roughly 12.3% upside from current levels.

Investors are keeping a close eye on geopolitical risks, including U.S.-China technology restrictions and supply chain exposure, which could affect semiconductor demand down the line.

TSMC’s Q2 revenue guidance of $39 billion to $40.2 billion remains the most immediate benchmark the market will be watching.

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