Taiwan Semiconductor Manufacturing Company (TSM) has reported a strong Q1 performance, with revenue increasing 35.1% year over year to $35.9 billion and net income and EPS climbing 58.3%. This growth was followed by strong demand for advanced-node technology, with gross margin at 66.2%, and operating margin at 58.1%. Analysts quickly increased their price targets and suggested that TSMC's earnings power may be higher than previously expected. The company's Q2 guidance was for revenue of $39.0 billion to $40.2 billion. High-performance computing now makes up about 61% of revenue. However, there are concerns about whether AI demand will sustain growth despite cyclicality and geopolitical risks.