TSMC (2330 TT) guides Q1 Revenue between USD 34.6-35.8bln (exp. 33.2bln), guides Gross Margin between 63-65% (exp. 59.6%), sees Operating Margin between 54-56% (exp. 50%), 2026 CapEx to come in between 52-56bln (prev. 40.9bln in 2025)

• Capex is to be higher in the next three years.
• Cost of tools are becoming more expensive.
• Long term gross margins of 56% and higher is achievable.
• In 2026 there are uncertainties from tariffs.
• Will be prudent in business planning.
• Robust AI-related demand.
• Increasing AI model adoption.
• 2026 sales to grow by close to 30% in USD terms.
• Preparing to increase capacity to support customers.
• Customers are providing strong signals and reaching out directly to request capacity.
• Firms have been showing TSMC that AI is a significant help to their businesses.
• Announces plans to expand its fabrication facilities in Arizona.
• Co. is worried about electricity in Taiwan.
• Co. informed that Silicon from TSMC is a bottleneck with the Co. aiming to deal with the bottle neck first and foremost.
• Reduced their 6 and 8 inch wafer capacity to optimise resources. 

TSMC's Q1 revenue guidance surpasses expectations, indicating robust demand, likely driven by AI-related growth. However, the significant CapEx increase signals challenges ahead with costs rising, while uncertainties around tariffs and electricity supply in Taiwan cast a shadow on their operational outlook. Overall, this solid guidance reflects strong customer demand while highlighting the need for prudent planning amidst external pressures.