Taiwan chipmaker TSMC reported a 58% year-over-year increase in profits for the first quarter of 2026, with the company cashing in on high demand for chips to power artificial intelligence processors.

According to the Associated Press, TSMC logged $18.1 billion in net quarterly profit in Q1, up from $11.5 billion in that same quarter last year. The company also reported $35.9 billion in revenue for the opening quarter of 2026, marking an increase of more than 40% year-over-year.

"AI-related demand continues to be extremely robust," said TSMC CEO C.C. Wei in an April 16 earnings call, while expressing confidence in what he described as a "multi-year AI mega-trend."

However, TSMC chief financial officer Wendell Huang warned of potential long term impacts from the ongoing war in Iran, which has severely limited maritime traffic through the Strait of Hormuz. While much of the world economy's concerns have revolved around the flow of oil tankers, the strait is also a vital gateway for chemicals used in chipmaking, such as helium. Qatar alone produces roughly a third of the world's supply of helium, with the country's state-owned gas company warning in late March that the war could limit its helium exports by 14%.

Huang noted that moving forward, the company has prepared safety safe stock inventory on hand for helium and other chemicals, and that it's not expecting any near-term impacts on operations. Even so, the Iran conflict could still weigh on profitability, given that spot prices for helium have doubled since the start of the war, and are expected to continue rising.