Shares of Taiwan Semiconductor (NYSE:TSM) ended Thursday with around a 1% drop in Taiwan trading after the foundry's Q1 2025 report fell short of revenue forecasts.
Net sales jumped 35.3% from a year earlier to $25.53 billion (NT$839.25 billion), driven by strong AI-related demand, but came in below analysts' expectations and dipped 5.1% from the $26.88 billion posted in Q4 2024.
Our first quarter was shaped by smartphone seasonality, partially offset by continued growth in AI business, said Senior VP and CFO Wendell Huang, noting the boost from data?center and accelerator chip orders.
Earnings per American Depositary Receipt climbed to $2.12, up from $1.38 in Q1 2024 and beating Street forecasts.
TSMC's CEO C.C. Wei acknowledged potential risks from new tariff policies but said customer ordering patterns remain steady. He reaffirmed a full?year revenue outlook of about 20% growth in U.S. dollar terms, pending any shifts in global trade rules.
Wei also dismissed reports of joint?venture talks, confirming the company is not negotiating technology licensing deals. He reiterated a planned $100 billion U.S. investment, on top of existing projects, to build wafer fabs and an R&D center.
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