Taiwan Semiconductor Manufacturing Co. (TSMC) posted its fastest quarterly revenue growth in over a year, reinforcing the belief that the global surge in AI development is driving demand for high-end chips and servers. TSMC, the main chipmaker for Nvidia and Apple, reported better-than-expected sales of NT$592. 6 billion ($18. 5 billion) in the March quarter, up 16% from projections. This strong performance supports expectations that the world's leading chipmaker will experience solid growth this year, following a downturn in smartphone and computer sales due to the pandemic. TSMC aims to invest $28 billion to $32 billion in capital expenditure and anticipates at least 20% revenue growth in 2024. The company's value has more than doubled since October 2022, driven by increased demand for its advanced AI chips from companies like Nvidia.

TSMC is slated to announce full earnings on April 18. The company is also expanding its operations to the US, Japan, and Germany to manufacture AI chips for internet giants such as Amazon and Microsoft. Furthermore, there are signs of overall market recovery, as seen in Samsung Electronics' sharp profit rebound in the first quarter. However, some investors caution that the current level of AI chip demand may not be sustainable in the long term, and concerns remain about the geopolitical tension in the Taiwan Strait. Additionally, Apple, TSMC's crucial customer, is facing challenges in growing iPhone sales in China, where Huawei is gaining ground in the high-end market.