Taiwan Semiconductor Manufacturing Co (TSMC) reported a 17.5 percent increase in sales for April, reflecting strong demand from major cloud service providers investing heavily in artificial intelligence (AI) technologies. The company’s revenue for the month reached NT$410.7 billion (approximately $13.1 billion), driven by its production of advanced semiconductors used by key clients such as Nvidia Corp and Advanced Micro Devices Inc.

Analysts anticipate robust growth for TSMC in the quarter ending in June, projecting revenues to rise by around 35 percent. This growth is underpinned by substantial AI-related investments from technology giants including Alphabet Inc, Amazon.com Inc, Meta Platforms Inc, and Microsoft Corp, which have collectively earmarked $725 billion for AI initiatives this year—significantly exceeding earlier estimates.

TSMC has positioned itself as a critical supplier in the expanding AI ecosystem, benefiting from the heightened demand for cutting-edge chips necessary to power machine learning and data processing applications. Reflecting this optimism, the company recently revised its full-year sales forecast upward and signaled that its capital expenditures are likely to approach the upper range of its previously announced budget, which could reach $56 billion.

However, TSMC also faces challenges amid a leveling off in the smartphone and consumer electronics markets. Rising costs for memory chips have contributed to higher prices for end products, potentially dampening demand in these sectors. Despite these headwinds, the company’s confidence in the growth trajectory of AI chip demand remains strong, reinforcing its outlook for continued expansion throughout the year.