Taiwan Semiconductor’s May sales jump 39.6% as AI demand stays strong

Taiwan Semiconductor Manufacturing (TSMC), the primary chip supplier to Nvidia (NVDA) and Apple (AAPL), reported a 39.6% year-over-year rise in May revenue as clients rushed to stockpile chips amid growing trade tensions.

The company generated NT$320.5 billion ($10.7 billion) in revenue last month. While this marks a strong annual increase, it’s an 8.3% decline from April, when TSMC saw a sharper 48.1% year-over-year gain.

Revenue for January through May 2025 totaled NT$1,509.34 billion, an increase of 42.6% compared to the same period in 2024.

Looking ahead, analysts project a 50.3% Y/Y increase in TSMC’s second-quarter sales, signaling continued robust demand despite month-over-month volatility.

TSMC chief executive and chairman C.C. Wei said last week that the demand for the company’s AI chips continues to outweigh supply.

The chipmaker reported strong Q1 results in April and issued a positive outlook for the coming years. “We continue to observe robust AI related demand from our customers throughout 2025. We reaffirm our revenue from AI accelerators to double in 2025,” said Wei on the earnings call.