TSMC’s sales jumped 30% in May as AI boom marches on, shares up

Taiwan Semiconductor Manufacturing (TSM) reported a 30% jump in May sales to NT$229.6 billion ($7.1 billion), driven by strong demand for AI and a rebound in some consumer electronics sectors.

The company’s US-listed shares rose 1% in premarket trading Friday.

The world’s largest contract chipmaker has capitalized on the global push to develop AI services, manufacturing semiconductors for Nvidia (NASDAQ:), which are then supplied to major companies like Microsoft (NASDAQ:) and OpenAI.

Moreover, global smartphone sales showed signs of recovery in the first quarter, boosting expectations for robust orders of mobile chips.

Hsinchu-based TSMC has maintained high margins amid a global surge in data center construction. It is the exclusive producer of Nvidia’s advanced AI accelerators and also manufactures semiconductors for Apple (NASDAQ:) and Advanced Micro Devices (NASDAQ:), Nvidia’s main competitor.

This week, TSMC Chairman and CEO C.C. Wei reaffirmed his outlook, predicting that AI development will drive a recovery across the sector this year.