Strong global AI infrastructure development prior to the outbreak of Middle East conflicts has driven Taiwan Semiconductor Manufacturing's revenue growth. The company reported a 30% year-over-year increase in combined revenue for January and February.
TSMC stated on Tuesday that consolidated revenue for the two months reached NT$718.9 billion (approximately US$22.6 billion). Analysts on average had projected a 33% revenue growth for the first quarter. February sales alone showed a 22% year-over-year increase, with the growth rate affected by the Lunar New Year holiday period—since the 2025 holiday fell in January.
As the primary contract manufacturer for Nvidia, AMD, and Broadcom, TSMC serves as a key indicator for the global AI industry. Market attention is currently focused on how potential U.S. and Israeli strikes against Iran could impact the willingness of various parties to proceed with data center construction and other digital infrastructure projects.
Alphabet, Amazon, Meta, and Microsoft have already planned capital expenditures exceeding $650 billion for this year. However, concerns remain about potential overcapacity and uncertainties in monetizing new technologies.
Building AI data centers can require tens of billions of dollars in investment and requires coordination among power generators, grid operators, suppliers, and financiers.
Bloomberg reported last week that Oracle and OpenAI have abandoned plans to expand a flagship AI data center in Texas due to prolonged financing negotiations and shifts in OpenAI's requirements.
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