Shares of Taiwan Semiconductor Manufacturing Company rose in premarket trading after the chipmaker reported strong monthly revenue growth, indicating that demand for AI-related semiconductors remains steady despite ongoing tensions in the Middle East.
U.S.-listed ADRs (American Depositary Receipts, which represent shares of a foreign company traded in the U.S.) rose about 2.3% to $373.70 before the market opened, while investors awaited U.S. inflation data that could offer more insight into future interest rates. Meanwhile, S&P 500 futures stayed mostly flat in early trading.
TSMC reported March revenue of NT$285.96 billion ($9 billion). This is a 45% jump from a year ago. First-quarter sales reached NT$1.13 trillion, up 35% year over year. This growth comes as large technology companies continue to invest in AI computing infrastructure.
There are concerns that rising tensions involving Iran could disrupt supply chains. These concerns focus especially on helium shipments used in advanced chipmaking. So far, these issues have had little immediate effect on orders. Helium is essential for wafer production. Possible shipping delays through the Strait of Hormuz have raised questions about short-term production stability.
The broader semiconductor industry has grown stronger. Concerns about geopolitical risks have eased. Leading firms like NVIDIA and Intel have continued to gain market share. Investors are moving back into companies expected to benefit from AI growth.
TSMC’s monthly revenue updates give an early look at customer demand. These updates come before the full quarterly results. The company will report first-quarter results on April 16. Analysts expect net income of NT$536.73 billion. This would be about 49% higher than last year.
TSMC shares have risen about 133% in the past year. This growth is driven by large technology companies investing in AI model development. Companies are expanding data centers and boosting high-performance computing. As demand for generative AI grows, TSMC continues to benefit.
