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 relatively easy for TSMC to pass through any cost increa

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 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.