TSMC Reports Robust Revenue Growth Driven by AI Chip Demand

TSMC reports 43% jump in Feb revenue amid strong AI chip demand By Investing.com

Investing.com-- Taiwan Semiconductor Manufacturing Co (TW:2330) on Monday reported a 43.1% jump in its February 2025 revenue amid robust demand for its chips used in artificial intelligence applications. The company's revenue reached NT$260.01 billion ($7.91 billion) in February, a 43.1% increase from NT$181.65 billion in the same month last year. The chipmaking giant's revenue for the first two months of 2025 totaled NT$553.30 billion, marking a 39.2% rise from the corresponding period in 2024, the company said in a statement. TSMC, the world's largest contract chipmaker, continues to benefit from strong demand for advanced semiconductor technologies, driven by artificial intelligence (AI) and high-performance computing applications. However, the month-on-month revenue dropped 11.3% in February from NT$293.29 billion in January, highlighting seasonal factors and potential inventory adjustments across the industry. TSMC's financial results are closely watched as a key indicator of global semiconductor demand, with the company supplying chips to major firms such as Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA).

TSMC Revenue Up Nearly 40% Through First Two Months of Year

The U.S.-listed shares of the company, which supplies tech heavyweights such as Apple and Nvidia, are falling in premarket trading. Taiwan Semiconductor Manufacturing Co. (TSM) said Monday that its combined revenue for the first two months of 2025 jumped 39% year-over-year, as demand continues for its artificial intelligence (AI) chips. The company said February sales were 260.01 billion New Taiwan dollars, a 43.1% jump from the same month last year. February sales marked an 11.3% drop from January 2025, however. The numbers come after the world's largest contract chip manufacturer posted better-than-expected fourth-quarter profit and a bullish outlook for AI demand. The Taiwanese company also said earlier this month that it plans to invest $100 billion in U.S.-based chip manufacturing facilities, growing the company's total investment at its Arizona site to $165 billion. The announcement comes at a time when the Trump administration aims to bring chip production back to the United States. TSMC shares are up by a fifth in the last 12 months through Friday.

TSMC Rides AI Wave: Sales Surge 39% In First 2 Months Of 2025 On Higher Demand - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), NVIDIA (NASDAQ:NVDA)

Semiconductor contract manufacturer and design company Taiwan Semiconductor Mfg. Co. Ltd. TSM reported a 39.2% jump in its two-month revenue for January and February in 2025 as compared to the same period last year. What Happened: TSM reported on Monday that its February 2025 revenue rose 43.1% to $7.911 billion or NT$260.01 billion from $5.527 billion or NT$181.648 from the same month in the last year. This was aided by the robust demand of its chips used for artificial intelligence applications worldwide. However, the company's sales declined by 11.3% monthly as its January sales stood at $8.923 billion or NT$293.288. Compared to the first two months of 2024, the sales rose by 39.2% in 2025 as the revenue increased from $12.092 billion or NT$397.433 billion to $16.835 billion or NT$553.297 billion for January and February combined. See Also: US Economic Slowdown 'Talk Of The Town,' Says Economist Mohamed El-Erian As Fed Chair Powell Reaffirms Growth At 'Solid Pace' Why It Matters: The Taiwanese company is a major supplier of U.S.-based chipmaker Nvidia Corporation NVDA and it recently announced about $165 billion of investment in the U.S. to power the future of AI. According to its press release, it plans to increase U.S. investment in advanced semiconductor manufacturing with three new fabs, two advanced packaging facilities, and an R&D center. Over the four years, TSMC's investment will create 40,000 construction jobs, tens of thousands of high-tech jobs, and drive over $200 billion in U.S. economic impact over 10 years, benefiting key tech clients. In addition to its newly announced manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California. Price Action: Taiwan Semiconductor's stock on the Taipei exchange closed 0.70% lower at TWD 998 or $30.35, whereas it rose 0.71% to $177.10 in the U.S. on Friday. The U.S. listed stock remains 12.14% lower on a year-to-date basis, however, it's up 27.39% over a year. Benzinga tracks six analysts with an average price target of $203.8 for the stock, reflecting a "hold" rating. Estimates range widely from $89 to $255. Recent ratings from Barclays, and Needham average at $235, suggesting a potential 32.76% upside. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, advanced on Friday. SPY gained 0.56% to $575.92, and QQQ was up 0.74% to $491.79, according to Benzinga Pro data. Read Next: MSTR Short Interest Falls 4.53% But Technical Analysis Reveals Mixed Signals: Is Michael Saylor's Strategy Poised For A Bounce Back? Photo courtesy: Shutterstock NVDANVIDIA Corp$110.40-2.03%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum83.77Growth88.54Quality97.93Value7.44Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$486.77-1.02%SPYSPDR S&P 500$571.00-0.85%TSMTaiwan Semiconductor Manufacturing Co Ltd$175.50-0.90%Market News and Data brought to you by Benzinga APIs