Taiwan Semiconductor Manufacturing Company (TSM) reported first quarter revenue on Friday, saying sales during the period climbed 35% on the continued strength of the ongoing global AI build-out.
The company’s revenue between January and March topped 1.13 trillion new Taiwan dollars ($35.7 billion), compared to estimates for the period. March revenue climbed 31% versus February and 45% versus March 2025.
The company will hold its first quarter earnings call on April 16.
The announcement is just the latest sign that global demand for AI chips shows no sign of abating for now.
On Wednesday, market research firm Gartner said worldwide semiconductor spending, including GPUs, memory, and storage chips, will reach $1.3 trillion in 2026, marking the largest growth in two decades.
That works out to a 64% year-over-year revenue increase for the chip industry.
TSMC is the world’s largest contract semiconductor manufacturer and serves as a barometer for the broader AI industry.
It produces processors for the likes of Nvidia (NVDA) and AMD (AMD), as well as Broadcom (AVGO), which helps design chips for Google (GOOG, GOOGL) and is working to design chips for OpenAI (OPAI.PVT).
AI firms continue to deal with capacity constraints due to overwhelming demand for computing capabilities, forcing them to search for chips from a variety of sources.
That’s leading many of the world’s tech giants to not only snatch up Nvidia and AMD chips of their own, but also lean on contract cloud companies like CoreWeave (CRWV) that rent out processor capacity to customers.
On Friday, Anthropic (ANTH.PVT) announced it signed a multiyear agreement with CoreWeave, sending shares of the computing provider soaring 13%. CoreWeave is also working with Meta (META) to power its AI services through December 2032.
And earlier this week, Anthropic said it’s working with Google and Broadcom to get access to 3.5 gigawatts worth of Google’s tensor processing units (TPUs).
Broadcom is also developing a custom chip for Anthropic rival OpenAI.
Projects like those and others will likely help continue to feed TSMC’s revenue growth in the months ahead.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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