Stock Analysis | TSMC Earnings Preview: Q1 Revenue Hits 1T NTD with Projected 50% Profit Surge; Wall Street Warns of Margin Peak

TSMC reported record Q1 2026 revenue of TWD 1.134 trillion, up 35% year-on-year, driven by a 5-10% price increase for advanced processes. Analysts project TWD 542.6 billion net profit, potentially marking nine consecutive record quarters. Key focus areas for the upcoming earnings report include management's outlook on smartphone and PC demand, potential supply chain disruptions due to the Middle East conflict, and whether the long-term gross margin target will be raised above 58%. The 2nm process yield and ramp-up are critical for future pricing power. While long-term AI demand appears robust, Macquarie warns near-term margins may have peaked due to 2nm depreciation costs.▶️ Download our app here:📌 Play Store: ⁠https://play.google.com/store/apps/details?id=com.tradingkey.mobile&hl=en⁠📌 App Store: ⁠https://apps.apple.com/us/app/tradingkey-stock-analysis/id6744304666📢 DISCLAIMERTradingKey provides general information on certain investment products. This information is not intended to constitute financial advice or a recommendation for any specific investment product.