Taiwan Semiconductor Reports 40% Surge In May Revenue As AI Demand Remains Strong

TSMC CEO CC Wei reaffirmed the company’s revenue guidance for 2025 last week, noting that the chip maker expects sales to grow in the mid-20s during the year.

Taiwan Semiconductor Manufacturing Co. (TSM) on Tuesday reported a 40% year-on-year surge in revenue for May.

TSMC’s shares surged over 2% at the opening bell on Tuesday.

The chip-making giant’s sales in May stood at 320.52 billion New Taiwan dollars ($10.70 billion), growing 39.60% year-over-year (YoY). However, from the peak in April, TSMC’s revenue declined 8%, the company’s numbers showed.

Earlier last week, TSMC CEO CC Wei underscored that demand for artificial intelligence (AI) has remained strong. This reflected in the demand from chip designers, who are TSMC’s customers.

“If demand drops, TSMC’s business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply,” he said.

He reaffirmed the company’s revenue guidance for 2025 last week, noting that the chip maker expects sales to grow in the mid-20s during the year.

Wei also said President Donald Trump’s tariffs could increase the costs of its Arizona manufacturing facility, where TSMC is investing $165 billion.

Nvidia Corp. (NVDA), one of the biggest customers of TSMC, eased investor concerns last month, reporting another blockbuster quarter. The company’s first-quarter earnings surpassed Wall Street expectations, with earnings per share (EPS) of $0.81, beating an estimated $0.75.

“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate,” said CEO Jensen Huang.

TSMC’s stock is up nearly 5% year-to-date and more than 23% over the past 12 months.

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