TSMC Q1 sales top estimates on surging AI demand ahead of U.S. tariffs. (00:22) Amazon (AMZN) pulls the plug on China orders, leaving vendors in the lurch - Bloomberg. (02:03) U.S. Postal Service aims to raise stamp prices to 78 cents. (02:56) Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Thursday: DJT, X, and moreGoogle reiterates $75B spending plan for data centers amid tariff woesFormer Treasury secretary Summers says govt 'rightly scared after collapsing markets'EU said to weigh buying more U.S. gas, but green transition still in focusSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Full Episode
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, April 10th. I'm Julie Morgan. TSMC reports Q1 revenue. Amazon backs away from China and the cost of snail mail could go up.
Taiwan Semiconductor Manufacturing reported a nearly 42% surge in Q1 revenue, fueled by strong demand for AI servers and smartphones ahead of looming U.S. tariffs. First quarter revenue totaled $25.6 billion, up 41.6% compared to the same period in 2024, marking the company's fastest pace of growth since 2022. According to Bloomberg, analysts on average expected around $25.3 billion.
March revenue also rose 46.5 percent year-over-year as electronics makers built up inventories in U.S. warehouses, preparing for possible trade disruptions. If you remember last month, the CEO of TSMC and President Trump jointly unveiled a $100 billion expansion in U.S. chipmaking investments, supporting the White House's push to restore manufacturing.
The president attributed the increased commitment to the impact of higher tariffs. Taiwan's semiconductor, whose customers include Apple, Nvidia, and AMD, will report its full Q1 earnings on April 17th, so just a week away.
Investors will be watching for a possible downward revision to the full-year sales target in capital expenditure plans, as the outlook for global chip demand weakens amid uncertainty following U.S. tariffs. The company expects net revenue in the range of $25 to $25.8 billion, with a consensus estimate of $25.52 billion for the first quarter of 2025, with a gross margin of 57 to 59%.
Amazon has canceled orders that originate from China and Southeast Asian countries, leaving certain vendors on the hook with unsold inventory. According to a document viewed by Bloomberg, Amazon appears to be reducing its exposure to U.S. tariffs on imported merchandise from China-based suppliers who provide a significant portion of Amazon's components and finished goods.
According to Bloomberg, a consultant to Amazon vendors claims the company has canceled several direct import orders of products made in China without warning. Because Amazon acts as the importer of record on these orders, it is responsible for paying import tariffs once the merchandise arrives in the U.S.
However, if the order is canceled once shipping is initiated, the tariff burden lies with the vendor once the merchandise reaches the United States. The United States Postal Service announced proposed price changes for its mailing services, set to take effect on July 13, pending approval from the Postal Regulatory Commission.
Among the most notable changes is a 5-cent increase in the price of a first-class mail forever stamp, raising the cost to 78 cents. The adjustments approved by the USPS Board of Governors represent an average price increase of approximately 7.4% across mailing services.
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