Shares of Taiwan Semiconductor (TSM 1.26%) were moving higher today after the company reported February revenue that showed growth was accelerating year over year from January to February.
The news seemed to be the latest confirmation that TSMC is seeing strong demand for AI-related chips even at a time when Apple, its biggest customer, is reporting sales headwinds in China.
As of 11:38 a.m. ET, the stock was up 1.1% after gaining as much as 6.1% earlier in the session.
Image source: TSMC.
Taiwan Semi is returning to growth
Taiwan Semi is recovering from the decline in the chip industry rapidly, the latest numbers indicate. In February, the company reported $5.74 billion in revenue, which was up 11.3% from a year ago, though it was down 15.8% from January, which may be for cyclical reasons.
That result also represented an acceleration from January as year-to-date growth for the first two months of the year was up 9.4%.
Those numbers seemed to convince investors that Taiwan Semi is benefiting from AI trends even as demand from Apple, which represents roughly 25% of its revenue, has been slow.
Taiwan Semi is also a central player in the AI boom as it's the top manufacturing partner for companies like Nvidia, AMD, and Broadcom.
What's next for TSMC
Taiwan Semi finally seems to be getting recognition as a winner in AI as it owns more than 50% share of the contract chip-manufacturing market and roughly 90% of the advanced chip-manufacturing segment, which is key to making AI components. Companies like Nvidia continue to complain about supply constraints, and that will benefit TSMC as prices rise and companies like to make smaller, even more advanced chips.
Expect Taiwan Semi stock to keep rising as the AI boom continues.
