Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported a sharp rise in quarterly revenue on Friday, boosted by accelerating global demand for artificial intelligence chips and its critical role supplying Nvidia, now the world’s most valuable company.
Revenue for the final three months of 2025 rose 20% year-on-year to around $33 billion, according to figures based on the chipmaker’s monthly updates.
The result came in ahead of expectations, reflecting TSMC’s central position in the AI supply chain.
TSMC manufactures the high-end chips designed by Nvidia, whose graphics processing units (GPUs) underpin the infrastructure powering today’s AI models.
As Nvidia’s dominance in AI grows (its market value recently overtook Apple) so too does demand for TSMC’s advanced chip fabrication capabilities.
Often seen as a bellwether for the broader tech cycle, TSMC’s performance offers a clear read on the strength of AI-related investment.
The company also supplies Apple, but it is its relationship with Nvidia that has put it at the heart of the AI boom.
With generative AI applications and data centre buildouts driving a surge in orders for cutting-edge semiconductors, TSMC remains a key enabler of the computing power needed to train and run increasingly large and complex AI models.