TSMC posts 35% jump in revenue to new record high as AI chip demand stays strong

Taiwan Semiconductor Manufacturing Company's logo is seen in the background beside a printed circuit board.

Taiwan Semiconductor Manufacturing Co . on Friday posted another quarter of record revenue driven by demand for AI chips.

For January to March, the world's largest chipmaker reported revenue of 1.13 trillion new Taiwan dollars ($35.6 billion), exceeding analyst forecasts of 1.12 trillion new Taiwan dollars, according to LSEG's compiled estimates. That marks a 35% year-on-year increase.

For March alone, TSMC reported a 45.2% year-on-year rise in revenue to 415.2 billion new Taiwan dollars.

The chip giant is benefiting from sustained demand for advanced semiconductors from its key customers like Apple and Nvidia , even as concerns persist about supply chain disruptions from the Middle East conflict and the potential impact it will have on demand.

"We think TSMC will easily exceed its 30% annual growth target," Sravan Kundojjala, an analyst at SemiAnalysis, told CNBC by email.

"While smartphone and PC end markets took a hit due to memory shortages," the AI segment of TSMC's business "pulled the weight," Kundojjala added.