TSMC March Revenue Hits Record as AI Demand Lifts First-Quarter Sales Above NT$1.1 Trillion

As global demand for artificial intelligence and graphics processors surges, TSMC's advanced manufacturing technology has become an irreplaceable source of supply for Nvidia and other technology giants. The world's leading contract chipmaker has gained substantially greater production capacity and pricing power. Its operations not only directly influence the pace of growth in the global AI industry but also serve as a key gauge of the technology cycle and a bellwether for the semiconductor supply chain.

TSMC's revenue reached a monthly record of NT$442.68 billion in June 2026, up 67.9% from a year earlier. First-half revenue exceeded NT$2.4 trillion, rising 35.6% and marking the company's strongest first half on record. Second-quarter revenue also hit an all-time high of $40.2 billion, while quarterly net profit jumped 77% year over year. Strong demand from major customers including Nvidia helped the company outperform the top end of its financial guidance across the board.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is widely viewed as a bellwether for the semiconductor cycle and the strength of artificial intelligence investment. Rapid advances in generative AI and large language models continue to fuel demand for chips made with advanced processes, providing the company's main growth engine.

TSMC's consolidated revenue reached NT$416.975 billion in May 2026, holding above the NT$400 billion mark and setting another monthly record. That was up 30.1% from the same period in 2025. Cumulative revenue for the first five months of 2026 also reached a record for the period. Backed by AI demand, the company expects full-year revenue growth to exceed 30%.

TSMC is the world’s largest contract chipmaker, and its performance is widely viewed as a key barometer of the semiconductor industry. Continued growth in demand for AI accelerators and high-performance computing chips has boosted utilization of advanced-node capacity and improved the product mix, driving revenue growth and a higher full-year outlook.

TSMC reported revenue of NT$410.7 billion for April 2026, a record for the month and its second-highest monthly total ever. HPC’s share of revenue has risen to 61%. Citing strong AI and HPC demand, the company raised its 2026 full-year revenue growth guidance to more than 30%, though its shares pulled back to NT$2,290.

TSMC benefited from advanced-chip demand fueled by generative AI, with high-performance computing and AI servers emerging as key growth engines. Its gross margin climbed to 66.2% in the first quarter of 2026, covering January through March, underscoring its lead in advanced processes, higher capacity utilization and pricing power. The market consequently raised its earnings forecasts for the next two years.

After TSMC released its first-quarter 2026 results, Daiwa Capital and Morgan Stanley raised their price targets to NT$2,330 and NT$2,588, respectively, citing expectations for continued rapid growth in AI server revenue. TSMC shares briefly hit a record NT$2,135 in early trading, helping lift Taiwan’s stock market by more than 900 points before it reversed course and fell below 38,000.

Revenue figures compiled by the Taiwan Stock Exchange and Taipei Exchange for listed and over-the-counter companies are a key gauge of corporate conditions and Taiwan equities’ fundamentals. Demand for generative AI infrastructure accelerated in the first quarter of 2024 as cloud service providers increased capital spending, boosting orders for Taiwan’s suppliers of AI servers, thermal-management modules and components.

By the end of March 2024, combined first-quarter revenue at Taiwan-listed and over-the-counter companies reached NT$14.36 trillion, up 24.3% from a year earlier and setting a record for the period. Revenue at 183 companies also hit first-quarter highs. Strong shipments by server manufacturers including Quanta Computer and Wistron made AI servers and thermal-management suppliers the main drivers of growth.