The hype around AI continues, and TSMC's annual revenue increased by 30%.

Brief overview of TSMC's financial condition at the end of Q1

There are still more than two weeks until the end of the first quarter, but for the first two months of the reporting period one can already speak about preliminary results of the world's largest contract chip manufacturer – TSMC.

Period | Revenue | YoY growth
January‑February 2026 | $22.6 bn | +30 %

Analyst forecasts and expectations

Bloomberg reports that consensus estimates for the entire first quarter project a revenue growth of 33 %, whereas in February it reached only 22 % due to Chinese holidays.

For investors, the key indicator remains the demand dynamics for chips used in AI computing infrastructure – this is what has driven the company’s revenue growth over the past few years.

Geopolitical factors as a new variable

Economic and technological trends are now being supplemented by geopolitical events in the Middle East:

1. Economic downturn
• Reduced investment in building data centers (DCs) for AI, especially in countries of the region.

2. Military conflicts
• Creation of significant logistical risks that affect the entire global semiconductor supply chain.

In recent days it has been emphasized that TSMC is heavily dependent on natural gas and helium supplies from Qatar. In addition, chip manufacturers may face a shortage of bromine – a key chemical used in silicon wafer etching.

Thus, TSMC’s financial results already show growth in the first quarter, but new geopolitical challenges can affect both demand and supply chains, which investors and analysts need to take into account.