Schwab Network Ways TSM Maintains AI Dominance Beyond Earnings
Apr 16, 2026
Joe Tigay, options strategist and portfolio manager who shares a concrete options trade idea. Marley Kayden, financial reporter who breaks down TSMC's results and strategic moves. They discuss TSMC's record revenues, advanced-node and 3nm expansion, rising AI demand and capex plans. Short takes on market reaction and an options play for a post‑earnings pullback.
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AI Demand Is Powering TSMC's Record Results
- TSMC delivered record results with AI and high-performance computing driving growth.
- Q1 profits rose 58% to $18.2B, revenue $35B, and HPC accounted for about 61% of sales, signaling AI-led demand dominance.
Smaller Nanometers Are Central To TSMC's Strategy
- TSMC is shifting production toward smaller nodes to meet AI compute needs and scale output globally.
- Advanced chips (7nm or smaller) were ~74% of wafer revenue and 3nm made ~25%, with expansion across Taiwan, US and Japan.
TSMC Is Committing To Heavy CapEx To Capture AI Growth
- Management expects multi-year AI-driven growth and raised full-year revenue guidance above 30% in USD.
- They forecast Q2 revenue $39B–$40.2B and signaled CapEx will be at the high end of the planned increase amid factory expansion.