Taiwan Semiconductor Manufacturing Co (NYSE:TSM) rose 60% to 236 billion new Taiwan dollars ($7.3 billion) in April, driven by continued demand for artificial intelligence and signs of recovery in consumer electronics.
The world’s largest contract chipmaker is expected to increase sales by about a third this quarter, following 34.3% revenue growth in March, fueled mainly by relentless demand for AI semiconductors.
The global smartphone market, especially in China, returned to growth in the first quarter, potentially boosting orders for TSMC’s key mobile chips, Bloomberg reports.
Also read: Intel’s New Venture in Japan: Pioneering Automation in Chip Manufacturing by 2028
TSMC is based in Hsinchu and has faced a year of weak demand for personal electronics Nvidia Corp (NASDAQ:NVDA) highly sought-after AI chips helped alleviate the problems.
The company’s shares hit a record high in April as it continues to benefit from the rise of AI technology. It is the exclusive producer of Nvidia’s most advanced training chips.
In April, TSMC shared plans to start production of its new “A16” chip manufacturing technology in the second half of 2026. Analysts told Reuters that TSMC’s latest technologies could challenge Intel Corp’s (NASDAQ:INTC) February claims that TSMC is being surpassed with its new “14A” technology.
In addition, TSMC unveiled a new technology that improves the speed of AI chips by powering computer chips from the back, which is expected to be available in 2026.
TSMC shares are up more than 68% in the past 12 months. Investors can gain exposure to the stock through VanEck Semiconductor ETF (NASDAQ:SMH) and IShares Semiconductor ETF (NASDAQ:SOXX).
Price promotion: TSM shares were trading 2.98% higher at $147.02 premarket at last check on Friday.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
Photo by Jack Hong via Shutterstock
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