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Investing.com-- TSMC (TW:2330) (NYSE:TSM), known formally as Taiwan Semiconductor Manufacturing Corp, clocked a nearly 40% jump in its May sales on Tuesday, as the chipmaking giant continued to benefit from robust artificial intelligence-fueled demand.
TSMC’s May sales grew 39.6% year-on-year to T$320.52 billion ($10.71 billion), the company said in a statement. This brought its year-to-date revenue to T$1.51 trillion, up 42.6% from the first five months of 2024.
Still, TSMC’s May revenue fell 8.3% from a record high $349.56 billion seen in April, reflecting a mild cooling in demand, especially as the company’s major customers, including Nvidia Corp (NASDAQ:NVDA), grappled with increased U.S. restrictions on sales to China.
Strength in the Taiwan dollar through May also weighed on TSMC’s top-line, given that a bulk of its revenues come from international markets.
But outside China, demand for Nvidia’s chips, which are at the heart an AI-fueled increase in chip demand– remained strong, especially among Wall Street’s so-called AI hyperscalers.
Recent quarterly earnings showed Wall Street’s biggest tech firms continued to spend big on AI chips and infrastructure, and signaled that they will continue to do so in the coming months, heralding robust chip demand for TSMC.
TSMC CEO C.C. Wei had signaled during the company’s annual shareholders meeting last week that higher prices stemming from steep tariffs could weigh on some demand for TSMC’s products. But he reiterated that AI-fueled demand remained strong.
The firm, which is the world’s largest contract chipmaker, stands to benefit from a potential scaling back of U.S. chip export restrictions on China, which could happen during ongoing trade talks between the two countries.
A host of media reports said that Trump was considering such a move this week.