Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 39.6% year-over-year rise in May revenue, driven by relentless demand for AI chips—even as month-on-month numbers showed a mild cooldown.

Key Highlights

• May Revenue: T$320.52 billion (~$10.71 billion), up nearly 40% YoY

• YTD Revenue: T$1.51 trillion, 42.6% higher than the same period in 2024

• April to May Drop: Down 8.3% from April's record high

• Currency Pressure: Strong Taiwan dollar trimmed international revenue conversions

Despite facing export restrictions to China, TSMC continues to benefit from global demand—particularly from major U.S. customers such as Nvidia (NASDAQ:NVDA), which remain central to the ongoing AI chip boom.

AI Hyperscalers Lead the Charge

Large-scale buyers including Meta, Microsoft, and Google are continuing to aggressively invest in AI infrastructure, keeping chip foundries like TSMC fully loaded. The hyperscaler demand has offset trade friction with China, at least in the near term.

TSMC CEO C.C. Wei flagged tariff-related cost pressures during the recent shareholder meeting but reaffirmed confidence in sustained AI momentum.

API Integration for Analysts

To track TSMC's evolving performance and valuation fundamentals, investors can use:

• Revenue Product Segmentation API: Gain insight into how much of TSMC's revenue stems from AI-specific clients or chip segments. View API

• Key Metrics (TTM) API: Compare margin strength, asset efficiency, and pricing power across global semiconductor leaders like TSMC, Nvidia, and AMD. View API

What's Ahead?

While monthly volatility in chip sales remains possible due to macroeconomic headwinds and trade tensions, TSMC's long-term growth trajectory is clearly tied to AI proliferation and next-gen computing demand. Eyes will now turn to its upcoming Q2 earnings, which will provide further signals on whether AI demand can continue to offset rising trade barriers.