Taiwan Semiconductor Manufacturing (NYSE:TSM) reported a significant increase in its March sales, attributed largely to the growing demand for chips fueled by advancements in artificial intelligence. TSMC's sales for March soared by 34% from the previous year, reaching T$195.21 billion ($6.1 billion), and saw a 7.5% rise from February's figures.

This surge led to a first-quarter total of T$592.64 billion in sales, marking a 16.5% increase year-on-year. It's important to note that this substantial growth was partly due to the low sales base in 2023, when TSMC faced weaker chip demand. The latter half of 2023, however, began showing signs of recovery, driven by AI-related demand.

As the world's leading contract chipmaker, TSMC supplies major tech companies, including NVIDIA Corporation and Apple. NVIDIA, in particular, has significantly contributed to TSMC's demand, thanks to the processor manufacturer's focus on AI-driven chip development. The heightened interest in AI has recently propelled TSMC's valuation to new heights, with plans underway to expand its major chipmaking facility in Phoenix, Arizona.