By Sherry Qin
Taiwan Semiconductor Manufacturing posted its highest monthly revenue ever, the latest sign that global tech giants aren't pulling back chip orders despite concerns that a bubble is forming in the artificial intelligence sector.
The world's largest contract chip maker's January revenue rose 37% compared with the same period a year earlier to 401.26 billion New Taiwan dollars, equivalent to US$12.71 billion, it said on Tuesday.
Investors had worried that AI demand is cooling given that its monthly revenue growth had slowed in recent months with its 16.9% rise in sales for October the slowest increase since February 2024.
The pickup in momentum for monthly revenue and its blockbuster 2026 capital expenditure plan should ease those concerns.
After its robust fourth-quarter results, TSMC boosted its 2026 capex plan to $52 billion-$56 billion, up 27%-37% from the previous year's. The chip maker also expects its 2026 revenue to rise another 30% after gaining 32% in 2025.
TSMC's shares ended 3.6% higher at NT$1,880.00 ahead of the data release.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
02-10-26 0100ET
