TSMC's Near-Term Margin Likely Peaked in 1Q -- Market Talk

Dow Jones04-10 11:58

0358 GMT - TSMC's near-term margin likely peaked in 1Q, Macquarie analysts say in a research note. The chip maker will likely guide for 2Q sequential revenue growth, driven by sustained AI demand and its leadership in advanced nodes, they write. However, the Taiwanese company's 1Q margins likely faced some pressure as it scales up 3-nanometer chip production capacity and its 2-nanometer chip enters mass production, they say. Meanwhile, external cost pressures will likely persist, with average selling prices of chemicals rising due to geopolitical disruptions. Macquarie expects TSMC's gross profit margin to trend lower to around 62.4% in 2Q from an estimated 1Q peak of 64%. Still, the analysts reckon TSMC's long-term growth remains fundamentally sound. Shares rise 1.5% to NT$1,990.00. (sherry.qin@wsj.com)

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April 09, 2026 23:58 ET (03:58 GMT)

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