TSMC's Arizona fab posted NT$18.81 billion ($597 million) in Q1 2026 profit — reported today by Digitimes — more than the entire 2025 Arizona subsidiary profit of $512 million. In the same quarter, TSMC's Kumamoto Japan joint venture (JASM, co-owned by Sony, Denso, and Toyota) posted its first-ever quarterly profit: NT$951 million ($30 million), reversing consecutive losses through Q4 2025. Both fabs entered mass production in late 2024.
The Arizona fab runs 4nm, supplying Apple and Nvidia Blackwell chips. Q1 2026 profit was 37x the $16 million posted in Q1 2025. Digitimes notes Arizona's Q1 profit now tops SMIC and UMC combined for the same period. TSMC guides for 2–4% gross margin dilution as overseas fabs scale; at $597 million in one quarter on one fab, the cost premium is demonstrably being absorbed.
The SemiAnalysis deep-dive on TSMC's overseas fabs provides a more detailed analysis of Arizona's cost structure and wafer economics for those who want to dig deeper.
Google and Blackstone plan to launch a TPU-powered neocloud, with $5B in equity coming from Blackstone. The venture will be a new US based company, name yet to be announced. The new company will bring the first 500 MW of capacity online in 2027.
Earnings tomorrow (May 20, after close). Street consensus: $79.2 billion revenue (+79.5% YoY), $1.78 EPS (+120% YoY). All eyes on forward guidance, which is around $87 billion for Q2 FY2027. China H200 approval status remains unresolved and will surface on the call. NVDA has declined on earnings day in three of the last four quarters despite beating consensus in each.
"Every trader can now take a position on the most important commodity of the AI infrastructure buildout: compute. @OrnnExchange × @ICE_Markets are partnering to list the first transaction-based compute index on a regulated exchange today. Compute is a commodity."
Ornn Exchange and ICE Markets are listing the first transaction-based compute index on a regulated exchange. ICE operates the clearing and exchange infrastructure behind energy futures, credit derivatives, and equity indices. Listing compute on that platform makes forward curves, standardized hedging instruments, and transparent price discovery available to data center operators, AI labs, and infrastructure investors for the first time. GPU compute capacity has previously been priced through bilateral contracts and spot markets with no public index.
Nvidia Q1 FY2027 Earnings — After market close. Revenue consensus $79.2 billion (+79.5% YoY), EPS $1.78 (+120% YoY). Topics to watch on the call: China H200 and H20 approval status, Vera Rubin transition timeline, CoWoS supply constraints, and gross margin trajectory as Blackwell scales. In three of the last four quarters NVDA declined on earnings day despite a beat. Setup entering the print: 20% gain in the prior month, a $5.42 trillion market cap, and near-unanimous Street bullishness.
The Compute 100 is led by Brian Schechter and Gaby Lorenzi, compute-focused investors at Primary. Primary is a pre-seed and seed-stage venture firm that backs founders building across markets including compute, industrials, healthcare and vertical AI. Primary’s compute portfolio includes Etched, The Biological Computing Company, Haiqu, and Atero (acquired by Crusoe).