Taiwan Semiconductor Manufacturing Co. (TSMC) saw its U.S.-listed shares rise over 2% in premarket trading Tuesday after reporting a 39.6% year-over-year jump in May revenue. The company posted NT$320.52 billion (approx. $10.7 billion) in revenue last month, fueled by continued strong demand for artificial intelligence (AI) chips.
From January to May, TSMC has generated NT$1.51 trillion in revenue, up 43% from the same period last year. While May’s revenue dipped 8% from April, the year-over-year growth highlights the chipmaker’s dominant position in the fast-growing AI and high-performance computing markets.
TSMC supplies major tech players like Apple and Nvidia, and is seen as a key beneficiary of the ongoing AI hardware boom. CEO C.C. Wei recently reaffirmed the company’s projection for mid-20% revenue growth in 2025 and reiterated plans to invest $100 billion in U.S.-based chip manufacturing.
Broader markets also responded positively as U.S.-China trade talks showed progress. The S&P 500 and Nasdaq both opened higher, with tech stocks leading gains. Apple rose 0.3%, and Tesla gained over 1%.
As global demand for AI chips accelerates, TSMC remains a critical player in the semiconductor industry’s growth story. However, investors remain watchful of geopolitical tensions and supply chain risks that could impact long-term performance.