Taiwan Semiconductor Manufacturing Co (TW:2330) reported an impressive 43.1% year-over-year revenue increase in February 2025. This growth stems from soaring demand for its chips designed for artificial intelligence and high-performance computing applications, with revenues reaching NT$260.01 billion ($7.91 billion).

Strong Performance Thus Far in 2025

In the first two months of the year, TSMC’s cumulative revenue hit NT$553.30 billion, reflecting a 39.2% rise compared to the same timeframe in 2024. As the world’s leading contract chipmaker, TSMC benefits greatly from the demand for AI applications, supplying essential components to tech giants like Apple Inc (NASDAQ:AAPL) and NVIDIA Corporation (NASDAQ:NVDA).

Temporary Revenue Decline Could Be Expected

Despite significant year-over-year growth, TSMC also saw an 11.3% monthly revenue dip in February compared to NT$293.29 billion in January. This drop can be attributed to seasonal factors and potential inventory adjustments.

Looking Ahead for TSMC

TSMC’s strong February revenue signals the growing relevance of advanced semiconductors in fueling AI innovations. Although seasonal adjustments may temporarily affect revenue trends, the underlying demand indicates a bullish future for the semiconductor industry.