AI demand remains strong! Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) May revenue increased by 30% year-on-year.

Global wafer foundry giant Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) announced that its revenue in May increased by 30% year-on-year to NT$416.98 billion (approximately US$13.2 billion), reflecting the sustained strong demand brought by the global competition to build artificial intelligence (AI) infrastructure. The company's combined revenue in April and May increased by approximately 24% year-on-year, and analysts expect its second-quarter revenue to increase by 35%. As the largest company in Asia by market value, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has become an indispensable participant in the global AI industry chain by producing advanced semiconductors for companies like NVIDIA Corporation (NVDA.US) and AMD (AMD.US). Meanwhile, tech giants Alphabet Inc. Class C (GOOGL.US), Amazon.com, Inc. (AMZN.US), Meta Platforms (META.US), and Microsoft Corporation (MSFT.US) are preparing to invest $725 billion in AI-related investments this year, much higher than previously expected. This means that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, as a crucial participant in the global AI industry chain, will benefit from the substantial investments of these tech giants. Chairman and CEO of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Wei Zhejia, expressed confidence in the company's growth prospects for the next few years at the annual shareholder meeting last week, thanks to the strong demand for computing power and advanced semiconductors being driven by the AI trend. Wei Zhejia emphasized at the shareholder meeting that even with the addition of advanced processes and packaging capacity in the United States, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR will be unable to meet the near-endless demand for AI-driven computing power infrastructure for many years to come. This aligns with statements made by NVIDIA Corporation CEO Huang Renxun, who stated that the company is still constrained by insufficient supply capacity. Wei Zhejia also reiterated that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's overall revenue growth this year will exceed 30%, and expressed a willingness to raise prices in a "moderate and sustainable manner." He contrasted this with the sharp price increases seen in the memory chip manufacturing industry and stated that the company will not raise prices significantly overnight like those companies. Additionally, Wei Zhejia mentioned that AI humanoid Siasun Robot & Automation and autonomous driving will be the next long-term performance growth drivers for Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR. From an engineering chain perspective, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR occupies the most critical "physical bottleneck" layer in the AI industry chain: NVIDIA Corporation's and AMD's AI chips, Broadcom Inc.'s (AVGO.US) and Marvell Technology, Inc.'s (MRVL.US) ASICs and network chips, and other cloud companies' proprietary ASICs, all rely on advanced processes, packaging, and high-yield mass production. If Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR continues to face high demand in the coming years, it means that AI data center construction is not a one-quarter haul, but a multi-year capital expenditure cycle from training GPUs to inference, Agentic AI, Siasun Robot & Automation, autonomous driving, and sovereign AI. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR also emphasized in its shareholder meeting materials that it will continue to invest in leading-edge processes and advanced packaging in Taiwan, and advance the multi-stage capacity construction of 2nm-level advanced processes to meet the strong computing power demand driven by AI. In April of this year, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR raised its full-year sales guidance and stated that its capital expenditures are expected to approach the upper end of the current forecast range - according to its estimates, capital expenditures could reach as high as $56 billion by 2026. However, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR also supplies chips to smartphone and consumer electronics manufacturers, who are currently facing challenges such as soaring memory chip costs and rising living expenses weakening consumer demand.