TSMC Q1 revenue rockets 35% on strong AI demand

Taiwan Semiconductor Manufacturing Company (TSM) reported archetypal 4th gross connected Friday, saying that income during the play climbed 35% connected the continued spot of the ongoing planetary AI build-out.

The company's gross betwixt January and March topped 1.13 trillion caller Taiwan dollars ($35.7 billion), compared to estimates for the period. March gross climbed 31% versus February and 45% versus March 2025.

The institution volition clasp its archetypal 4th net telephone connected April 16.

The announcement is conscionable the latest motion that planetary request for AI chips shows nary motion of abating for now.

On Wednesday, marketplace probe steadfast Gartner said worldwide semiconductor spending, including GPUs, memory, and retention chips, volition scope $1.3 trillion successful 2026, marking the largest maturation successful 2 decades.

That works retired to a 64% year-over-year gross summation for the spot industry.

TSMC is the world’s largest declaration semiconductor shaper and serves arsenic a barometer for the wide AI industry.

It produces processors for the likes of Nvidia (NVDA) and AMD (AMD), arsenic good arsenic Broadcom (AVGO), which helps plan chips for Google (GOOG, GOOGL) and is moving to plan chips for OpenAI (OPAI.PVT).

AI firms proceed to woody with capableness constraints, owed to overwhelming request for computing capabilities, forcing them to hunt for chips from a assortment of sources.

That’s starring galore of the world’s tech giants to not lone snatch up Nvidia and AMD chips of their own, but thin connected declaration unreality companies similar CoreWeave (CRWV) that rent retired processor capableness to customers.

On Friday, Anthropic (ANTH.PVT) announced it signed a multiyear statement with CoreWeave, sending shares of the computing supplier soaring 13%. CoreWeave is besides moving with Meta (META) to powerfulness its AI services done December 2032.

And earlier this week, Anthropic said it’s moving with Google and Broadcom to get entree to 3.5 gigawatts worthy of Google’s Tensor Processing Units (TPUs).

Broadcom is besides processing a customized spot for Anthropic rival OpenAI.

Projects similar those and others volition apt assistance proceed to provender TSMC’s gross maturation successful the months ahead.

Email Daniel Howley astatine [email protected]. Follow him connected Twitter astatine @DanielHowley.

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