Taiwan Semiconductor Manufacturing Co., Ltd. (TMSC)saw a sharp rise in monthly sales in March, capitalizing on the continued artificial intelligence boom driven by high-end chips.
According to TSMC, sales in March increased 34.3% year-on-year to NT$195.2 billion ($6.1 billion), the fastest pace of growth since November 2022.
The company’s first quarter revenue increased 16.5% year-on-year to NT$592.6 billion.
TSMC is the world’s largest contract semiconductor manufacturer, manufacturing chips for the following companies: apple to Nvidia.
The company is currently riding the AI boom. Semiconductors, such as those designed by Nvidia, have supported the development of AI applications.
Competition is fierce in the market. AMD launched a rival chip to Nvidia last year. intel unveiled its latest AI product package on Tuesday.
Many startups are also developing AI chips, and TSMC is manufacturing AI chips for some companies.
TSMC stock is up nearly 40% year-to-date as investors bet on continued demand for AI chips.
In January, the company announced that AI revenue was growing 50% on an annual basis. Analysts expect TSMC’s total revenue to increase 23.7% this year, after declining in 2023, according to LSEG’s consensus estimates.