Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Further Reading from MarketBeat.com
TSMC: Despite Post-Earnings Fall, Signs of AI Weakness are ScantSubmitted by Leo Miller. Article Published: 4/18/2026. 
Key Points
- TSMC's latest earnings report saw the company post top and bottom line beats, while 2026 guidance saw an upward revision
- The company noted its "extremely robust" demand and is pushing its CapEx forecast up
- While the firm acknowledged multiple gross margin headwinds, these are features rather than bugs
- Special Report: Have $500? Invest in Elon’s AI Masterplan
For another quarter, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) showed no signs that its artificial intelligence (AI) buildout is slowing. Quarterly results were robust, and the company issued a modest but meaningful guidance increase. TSMC remains one of the best-positioned companies globally, benefiting from persistent AI demand. TSMC Posts Profit Beat, Forecasts More Than 30% Growth in 2026In Q1 2026, TSMC reported revenue of $35.9 billion, up nearly 41% year over year — its fastest YOY growth since Q2 2025. Revenue slightly exceeded analysts' expectation of about $35.5 billion.
Most investors are reacting to the Iran strikes without understanding the underlying motive driving the decision.
Addison Wiggin, Founder of Grey Swan Investment Fraternity, says there is a hidden reason behind the bombing - and knowing it could change how you position your money right now. Discover the real reason behind the Iran strikes before markets react
On the bottom line, diluted earnings per American Depositary Receipt (ADR) were $3.49, a rise of nearly 65% YOY that comfortably beat estimates of $3.26. Two factors drove the beat: gross margin came in at 66.2% versus management's forecast of 66%, and operating margin was 58.1% against guidance of 56%. Guidance for Q2 followed a similar pattern. For the next quarter, TSMC projects sales between $39 billion and $40.2 billion, or $39.6 billion at the midpoint — implying roughly 32% YOY growth and topping expectations of $38.09 billion. The company also slightly raised its full-year outlook, now expecting revenue to rise by over 30% YOY in U.S. dollar terms. Last quarter, management had forecasted full-year growth “close to 30%.” TSMC Sees Strong Demand Now, and in the FutureOn the broader AI front, TSMC made several encouraging comments. Management said that “AI-related demand continued to be extremely robust,” and suggested the shift from generative to agentic AI is “leading to another step up in the amount of tokens being consumed.” In this context, tokens are a unit of measurement for AI usage — more token consumption translates into higher demand for TSMC’s chips. The company also expects 2026 capital expenditures (CapEx) to be at the high end of its $52 billion to $56 billion range. Higher CapEx signals stronger long-term demand as TSMC builds new facilities and upgrades existing ones. When asked why CapEx is trending up, CEO C.C. Wei gave a blunt answer. He said, “A very simple answer is, the demand are very robust, especially from the [high performance computing] and AI applications.” TSMC added that its CapEx over the next three years will be “significantly higher” than the $101 billion it spent over the past three years, reflecting its “strong conviction in the AI megatrend.” TSMC Details Expected and Necessary Gross Margin DilutionsDespite very strong AI demand, TSMC flagged several headwinds. In 2026, the ramp-up of its N2 manufacturing node is expected to create a 2%–3% drag on gross margin. That impact is typical when new nodes scale: initial costs are higher and wafer yields are lower as production is optimized. Over the longer term, new nodes tend to improve profitability because they enable more advanced, higher-value chips. The company also said the ramp of its non-Taiwan fabrication sites will dilute gross margins by about 2%–3% over the next few years, rising to 3%–4% later on. While not ideal, this was largely expected and reflects a necessary trade-off. Investing billions in U.S. and other overseas fabs helps mitigate tariff risk and reduces the geographic concentration of TSMC’s manufacturing. The Chinese government does not recognize Taiwan’s independence, and a hostile move to seize the island would seriously threaten TSMC’s operations. Such an action would likely prompt a strong U.S. response given TSMC’s strategic importance to the global economy — a key deterrent that underscores the importance of TSMC’s ties with the United States. Needham Eyes Over 30% Gain After TSMC’s Impressive ReportAfter the results, TSMC shares fell about 3%. Still, there were few obvious weaknesses in the report; the modest 2026 guidance increase and strong commentary on AI demand are clear positives. Notably, analysts at Needham and Company raised their price target to $480 — a 15% increase that implied more than 30% upside in the shares at the time of the rating. |
Post a Comment
Post a Comment