Taiwan Semiconductor Revenue Skyrockets On Unstoppable AI Demand

Key contract chipmaker Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) delivered stronger-than-expected first-quarter revenue, with analysts pointing to sustained AI demand and favorable industry trends despite geopolitical and cost pressures.

The stock gained in the premarket on Friday after the results.

Revenue Beats Estimates As AI Demand Holds Firm

Taiwan Semiconductor reported a 35.1% year-over-year increase in quarterly revenue to about 1.13 trillion New Taiwanese dollars ($35.6 billion), exceeding analyst estimates of 1.12 trillion New Taiwanese dollars, with March sales rising 45.2%.

The performance indicates that demand for AI chips remained resilient even as tensions in the Middle East disrupted shipping routes and increased energy costs.

The company, a key supplier to Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL), continues to benefit from global AI infrastructure spending, helping ease investor concerns about a potential slowdown.

Analyst Sees Margin Upside And Strong Node Demand

The company will report its full first-quarter earnings on April 16.

Bloomberg Intelligence said Taiwan Semiconductor is likely to exceed first-quarter guidance and analyst estimates, supported ...

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