TSMC is likely to report strong 1Q results broadly in line with consensus,
according to Bernstein analysts.
They say capacity freed up from Qualcomm and MediaTek mobile chips should be
easily absorbed by AI-related demand. While energy costs linked to the Middle
East conflict may rise, the impact is unlikely to be immediate, leaving upside
risk to 2Q margins.
Electricity costs account for only a low single-digit share of revenue, making
it is relatively easy for TSMC to pass through any cost increases. However,
Bernstein expects the company to keep capex guidance unchanged this earnings
season despite ongoing chip shortages and geopolitical uncertainty.
