Chip giant Taiwan Semiconductor Manufacturing (NYSE:TSM) could boost the entire chip sector when the company reports first-quarter financial results Thursday before market open.

Here are the earnings estimates and key items to watch.

Taiwan Semiconductor Q1 Analyst Estimates

Analysts expect Taiwan Semiconductor to report first-quarter revenue of $35.50 billion, up from $25.53 billion in last year's first quarter, according to data from Benzinga Pro.

The company previously announced quarterly revenue of $35.6 billion, up 35.1% year-over-year with its March monthly results. The quarterly revenue total marks a new company record.

Analysts expect the company to report quarterly earnings per share of $3.31, up from $2.12 in last year's first quarter.

Key Items to Watch in Q1 Results

With the company previously announcing revenue totals for the quarter, attention could turn to earnings and other financial metrics, along with guidance.

March revenue was up 45.2% year-over-year, signaling potential strength as some experts have pointed to Taiwan Semiconductor being supply constrained through 2028.

Taiwan Semiconductor's report and its comments on supply could be vital to key customers like Apple Inc (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA).

Strong quarterly results could point to AI infrastructure spending remaining strong and wipe away concerns about slowdowns for AI spending and the chip sector.

Investors and analysts will likely be eyeing the full-year guidance from the company and commentary on supply, Middle East tension and other macroeconomic items that could impact the AI and chip stock trades.

When Taiwan Semiconductor reported quarterly results in January, the strong results and guidance helped kickstart a brief rally in chip stocks given the strong commentary from one of the leaders.

With a market capitalization of $1.97 trillion, Taiwan Semiconductor is the sixth largest public company worldwide. The company's sheer size and key relationships with some of the largest companies in the world make Thursday's report one of the key results for investors to pay attention to this quarter.

As an international company, Taiwan Semiconductor isn't a top holding in top U.S. market indexes, but the overall impact on the chip sector and technology stocks could make the Invesco QQQ Trust (NASDAQ:QQQ) and other indexes volatile.

Also on watch will be the VanEck Semiconductor ETF (NASDAQ:SMH), which counts Taiwan Semiconductor as the second largest holding at 11.3% of assets.

Taiwan Semiconductor Stock Price Action

Taiwan Semiconductor stock is up 0.3% to $380.91 on Wednesday versus a 52-week trading range of $145.84 to $390.20. Taiwan Semiconductor shares are up 19.2% year-to-date in 2026 and up 142% over the last 52 weeks.

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