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

TSMC has raised its revenue guidance and capital expenditures for 2026, driven by the increasing demand for AI accelerators and related hardware. The company is confident in the long-term growth potential of the AI trend but warns of potential profitability impacts due to rising costs associated with the conflict in the Middle East. TSMC's revenue in Q1 2026 was primarily boosted by the HPC segment, with Nvidia emerging as its top customer in 2025. The company plans to expand its 3nm-capable fab capacity to meet the growing demand for advanced nodes, particularly in the AI sector.