Electronics manufacturers have accumulated Commodities in USA warehouses, leading to a surge in demand for AI Servers and Smart Phones. Taiwan Semiconductor's revenue growth rate in the first quarter was the fastest since 2022. There are views suggesting that investors will focus on the potential downward adjustment of the annual sales targets and capital plans, reflecting the uncertainty of the Global chip demand outlook following the implementation of new tariffs in USA on April 9.
$Taiwan Semiconductor (TSM.US)$ The revenue growth rate in the first quarter is the fastest since 2022, reflecting that before the implementation of tariffs, electronics manufacturers had stockpiled commodities in US warehouses, leading to a surge in demand for AI servers and smart phones.
On Thursday, April 10, Taiwan Semiconductor released the earnings report for March 2025, showing sales of 285.957 billion New Taiwan dollars in March, a 10% increase month-on-month and a 46.5% increase year-on-year, which has accelerated compared to the previous month's year-on-year growth of 43.1%.
The report also shows that the total sales for Taiwan Semiconductor in the first quarter reached 839.254 billion New Taiwan dollars, reflecting a year-on-year increase of 41.6%. Analysts generally expect Taiwan Semiconductor's first-quarter revenue to be 835.66 billion New Taiwan dollars. Taiwan Semiconductor will release the complete quarterly earnings report next week.
Concerns are deepening about the potential impact of tariffs on the demand for electronic products such as the iPhone. Last weekend, Apple stores across the USA were crowded with consumers worried that tariffs would raise prices.
Some analysts warn that Taiwan Semiconductor may have to lower its annual revenue growth target to the mid-20% range, reflecting the potential impact of global uncertainty and tariffs on the economy.
There are views that investors will focus on the potential downward adjustment of annual sales targets and capital plans, reflecting uncertainty about the weak outlook for global chip demand after the new tariffs were implemented in the USA on April 9. According to CCTV news, on April 8 local time, US Trade Representative Tai announced that "reciprocal tariffs" would take effect on the 9th.
The analysis also pointed out that the company's management comments on the demand dynamics of the leading process nodes (N2, N3), particularly the demand from key clients Apple and Qualcomm, the recovery trajectory of the N7 node, the cost pressures on US factories due to tariffs, the strategic relationship with Intel, and the confirmation of extending CoWoS capacity limits will be critical factors.
After the report was released, Taiwan Semiconductor's stock price increased further. As of the publication time, Taiwan Semiconductor's US stock surged over 4% in after-hours trading.
As of the close of the Taiwan stock market today, Taiwan Semiconductor hit the upper limit, closing at 863 New Taiwan dollars per share. This is also the first time in nearly 16 years that Taiwan Semiconductor has experienced an opening limit increase.
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