TLDR
- TSMC reported May revenue of $10.7 billion, jumping 40% compared to the same month last year
- The chipmaker’s revenue for the first five months of 2025 increased 43% year-over-year
- Monthly revenue dropped 8.3% from April to May despite the strong annual growth
- TSMC shares rose over 2% in premarket trading following the earnings announcement
- The company supplies advanced chips to major tech companies including Nvidia and Apple
Taiwan Semiconductor Manufacturing posted strong revenue growth in May, with sales jumping 40% compared to the same period last year. The world’s largest contract chipmaker reported monthly revenue of 320.5 billion New Taiwan dollars, equivalent to about $10.7 billion.
The strong performance drove TSMC’s American depositary receipts up 1.6% to $210.37 in premarket trading Tuesday. Some reports showed shares rising more than 2% in early trading.
Revenue for the first five months of 2025 reached NT$1.51 trillion, representing a 43% increase over the same period in 2024. This growth reflects continued strong demand for the company’s advanced semiconductor manufacturing services.
Taiwan's TSMC $TSM still going strong with a 39.5% YoY revenue growth in May.
5M25 revenues growth 43%, 2025e +26%.
12m fw-looking P/E 19.6x and PEG ~1x.
Share price is +46% since April #tariff lows, but only +5% YtD.
TSMC accounts for ~10% of the emerging markets index. pic.twitter.com/fGYXpK2DfT
— Emre Akcakmak (@akcakmak) June 10, 2025
Despite the impressive year-over-year growth, May revenue declined 8.3% compared to April’s figures. This month-to-month decrease shows some volatility in the company’s monthly performance.
TSMC manufactures chips for major technology companies including Nvidia and Apple. The company produces the advanced processors that power artificial intelligence applications and other cutting-edge technologies.
Strong AI Demand Drives Growth
The revenue surge comes as demand for AI chips remains elevated across the technology sector. TSMC’s advanced manufacturing capabilities make it a key supplier for companies developing AI hardware and software solutions.
The company’s stock performance has outpaced broader market gains over the past year. TSMC’s American depositary receipts have climbed 25% in the last 12 months, more than double the gain of the S&P 500 index.
Year-to-date performance shows TSMC shares entering Tuesday up 5% for 2025. This performance reflects investor confidence in the company’s position in the semiconductor market.
TSMC serves as a critical supplier to tech giants like Nvidia, which designs advanced graphics processing units used in AI applications. The company also manufactures chips for Apple and other major technology firms.
Investment Plans and Future Outlook
In March, TSMC CEO C.C. Wei joined President Donald Trump in announcing plans to invest $100 billion in U.S.-based chip manufacturing facilities. This investment represents a major expansion of the company’s manufacturing footprint outside Taiwan.
During the company’s first-quarter earnings call in April, Wei projected full-year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms. This guidance suggests continued strong performance throughout the year.
The company’s position as the world’s largest contract chipmaker gives it a unique role in the global technology supply chain. TSMC’s advanced manufacturing processes are essential for producing the most sophisticated semiconductors currently available.
Revenue growth has been consistent across multiple months, with the company reporting strong year-over-year increases throughout early 2025. The 43% growth rate for the first five months demonstrates sustained momentum in the business.
TSMC’s manufacturing capabilities span multiple technology nodes, including the most advanced processes available commercially. These capabilities make the company essential for tech companies developing next-generation products.
The May revenue figure of $10.7 billion represents one of the company’s strongest monthly performances. This level of sales reflects both high demand and the company’s ability to meet customer needs at scale.
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