TSMC ups revenue guidance and CapEx, buoyed by 'multiyear AI megatrend' — warns Middle East conflict may impact profitability as costs increase

TSMC posted strong first-quarter 2026 results and lifted both its 2026 revenue and capital spending outlooks to the top of prior ranges.

The company said it will add more 3nm-capable capacity to keep up with surging AI-chip demand.

Demand from AI accelerators, including Nvidia chips, is reshaping TSMC’s manufacturing and expansion plans.

TSMC also warned that the Middle East conflict could pressure profitability through higher costs.