TSMC May Revenue Soars on AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) reported its second-highest monthly revenue ever in May 2025, reaching NT$320.5 billion (US$10.7 billion), up 39.6% year-over-year, driven by strong demand for advanced 3nm and 5nm chips amid an AI boom and client stockpiling. The surge has propelled TSMC's American depositary receipts up 25% over the past year and boosted Taiwan's stock market, with related industries like AI server manufacturers and PCB suppliers also seeing notable gains. Despite an 8.3% month-on-month decline from April, analysts expect TSMC's second-quarter sales to rise about 39%, supported by continued robust orders from major clients such as Nvidia and Apple. The company faces challenges from currency fluctuations, as a stronger Taiwan dollar could impact profit margins. Market experts anticipate sustained strong demand for AI chips, with investor attention now shifting to suppliers of AI infrastructure components.