Taiwan Semiconductor Manufacturing Co. (TSMC) (TSM) reported April revenue of NT$410.73 billion ($13.08 billion), up 17.5% year-over-year as strong global demand for AI chips continued to support growth. As TSMC plays a key role in the global semiconductor supply chain, its strong revenue growth suggests demand for AI infrastructure and advanced chips remains robust across the industry.
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Forget margin or options. Here's how the pros trade NVDAFor context, TSMC is the world’s largest contract chipmaker. The company supplies advanced semiconductors to top tech giants, including Apple (AAPL), Nvidia (NVDA), and Advanced Micro Devices (AMD).
AI Chip Demand Shows No Signs of Cooling
TSMC has been one of the biggest beneficiaries of the AI spending boom due to its critical role in manufacturing advanced AI chips and accelerators. For the first four months of 2026, TSMC reported revenue of NT$1.54 trillion, up 29.9% year-over-year. However, April revenue slipped 1.1% from March’s NT$415.19 billion, reflecting a modest sequential slowdown.
Looking ahead, the company expects second-quarter revenue between $39 billion and $40.2 billion, up from $35.9 billion reported in the first quarter. In April, TSMC raised its full-year sales outlook and said capital spending is likely to trend toward the upper end of its projected range of up to $56 billion, signaling confidence in continued AI infrastructure investment.
What It Means for AI Chip Stocks
TSMC’s rising sales suggest that demand for AI accelerators, data center GPUs, and high-performance computing chips remains strong despite concerns about slowing AI spending. The company’s business mix has also shifted significantly in recent years. TSMC was once heavily dependent on smartphone demand and iPhone production cycles, but growth is now increasingly driven by AI chip orders, particularly from companies like NVDA.
Meanwhile, advanced chips built on 7nm technology or smaller accounted for the majority of total wafer revenue, highlighting continued demand for cutting-edge AI processors. That is also a positive signal for the broader semiconductor sector, including AMD, Broadcom (AVGO), and other AI chipmakers that depend on advanced manufacturing capacity to support rising AI infrastructure spending. Below is a screenshot for reference.
For Nvidia specifically, TSMC’s latest results suggest hyperscalers and cloud companies are still placing large AI chip orders, supporting continued production demand for Nvidia’s Blackwell platform and other AI GPUs.
Is TSMC Stock a Good Buy?
According to TipRanks, TSM stock has a Strong Buy consensus rating based on six Buys and one Hold assigned in the last three months. At $465.0, the TSMC average stock price target implies a 12.28% upside potential.
