TSMC’s sales quicken in first two months in upbeat note for AI

(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s (TSM) gross climbed 39% successful the archetypal 2 months, quickening from 2024 successful a motion of resilient request for the Nvidia Corp. (NVDA) chips that powerfulness AI development.

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The world’s largest chipmaker reported combined gross for the archetypal 2 months of NT$553.3 cardinal ($16.8 billion). That compares with 34% maturation during the full-year of 2024. Analysts connected mean are projecting maturation of astir 41% this quarter.

As the shaper of astir of the AI chips successful the world, TSMC’s income are a barometer for the sector. Wall Street and Silicon Valley are present debating the sustainability of an AI frenzy that made Nvidia the world’s astir invaluable company, particularly aft China’s DeepSeek appeared to show a much frugal approach.

What Bloomberg Intelligence Says

Taiwan’s robust maturation successful integrated circuit exports successful January connote AI spot income are driving up TSMC’s revenue, export information show. While 300-mm silicon wafer shipments awesome a recovery, 200-mm wafers look to bespeak weaker automotive and concern demand. Electric components request an bid pickup from consumer-device companies.

- Masahiro Wakasugi and Takumi Okano, analysts

Click present for the research.

Last week, Broadcom Inc. (AVGO) became the latest large tech steadfast to connection reassurance that spending connected artificial quality computing remains healthy. Before that, Taiwanese bellwether Hon Hai Precision Industry Co. (HNHPF, HNHAF) posted a 25% emergence successful gross during the archetypal 2 months of 2025, besides accelerating from past year.

One large uncertainty TSMC faces successful 2025 is whether US President Donald Trump volition slap tariffs connected spot imports. TSMC may’ve benefited from front-loading oregon stockpiling up of that imaginable move. Last week, the Taiwanese company’s main enforcement joined Trump successful the White House to outline an further $100 cardinal concern — 1 of the largest outlays by a overseas steadfast successful US manufacturing.

The determination was wide viewed arsenic intended to stave disconnected tariffs, though it raised concerns that precocious exertion could beryllium moving distant from Taiwan.

Bloomberg Intelligence recognition expert Cecilia Chan pointed retired successful a study that the $100 cardinal further concern announcement would not interaction TSMC’s recognition ratings arsenic it has a record-high nett currency presumption of $44 billion.