According to analysts at Macquarie in a research report, Taiwan Semiconductor Manufacturing's near-term profit margins likely peaked during the first quarter. They noted that, driven by sustained AI demand and leadership in advanced nodes, the chipmaker is expected to provide guidance for sequential revenue growth in the second quarter. However, they indicated that as the Taiwanese company expands its 3-nanometer chip capacity and moves its 2-nanometer chips into mass production, its first-quarter margins may come under some pressure. Meanwhile, external cost pressures are expected to persist, with geopolitical disruptions contributing to higher average selling prices for chemicals. Macquarie forecasts that TSMC's gross margin will decline from an estimated peak of around 64% in the first quarter to approximately 62.4% in the second quarter. Despite these near-term headwinds, the analysts maintain that TSMC's long-term growth fundamentals remain solid.
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