TSMC posts fastest monthly revenue growth since 2022 on AI chip boom

Taiwan Semiconductor Manufacturing Co. (TSMC), posted a surge in monthly revenue in March, as it cashed in on a continuing artificial intelligence boom powered by high-end chips.

TSMC said March revenue came in at 195.2 billion new Taiwan dollars ($6.1 billion), up 34.3% year-on-year — marking the fastest pace of growth since November 2022.

The company's first-quarter revenue totaled 592.6 billion new Taiwan dollars, up 16.5% year-on-year.

TSMC is the world's largest contract semiconductor manufacturer, which makes chips for companies from Apple to Nvidia.

The company is currently riding the AI boom. Semiconductors, such as those designed by Nvidia, have underpinned the development of AI applications.

Competition has been rising in the market. AMD launched a rival chip to Nvidia last year, while Intel on Tuesday took the wraps off its latest AI offering.

A number of startups are also developing AI chips, which TSMC manufactures for some companies.

TSMC shares are up just under 40% this year to date, as investors bet on the continued demand for AI chips.

In January, the company said that its AI revenue is growing 50% on an annual basis. Analysts expect TSMC to post a 23.7% rise in total revenue this year, according to LSEG consensus estimates, after a decline in 2023.