TAIPEI, TAIWAN: A strong push from artificial intelligence demand lifted TSMC's quarterly revenue to new highs, with the chipmaker posting results just above expectations.

Taiwan Semiconductor Manufacturing Co (TSMC) said this week that revenue for the first quarter rose 42 percent year-on-year to T$839.3 billion (US$25.6 billion), slightly ahead of an LSEG SmartEstimate of T$835.7 billion based on 19 analysts. The result also aligned with the company's previous guidance of $25 billion to $25.8 billion.

The world's largest contract chipmaker attributed the performance to continued AI momentum, which has more than offset weaker post-pandemic demand in the consumer electronics segment.

In February, TSMC had warned that first-quarter revenue would likely hit the lower end of its forecast range due to a T$5.1 billion ($161 million) hit from a January earthquake in Taiwan.

The company will release full first-quarter earnings on April 17, including guidance for the current quarter and full year.

TSMC counts Apple and Nvidia among its top clients, positioning the firm at the heart of the AI-driven growth across the global chip industry.

Shares of TSMC jumped 9.9 percent in Taipei on April 10 following President Donald Trump's announcement of a pause on new U.S. tariffs. The stock, which had been under pressure since the initial tariff announcement, is now down 19.7 percent for the year, closely tracking the broader Taiwan stock index's 17.5 percent decline.

Although the new tariffs have not yet targeted semiconductors, the sector has been watching developments closely amid trade tensions.

Foxconn, another major Taiwanese player and the world's largest contract electronics manufacturer, has also benefited from the AI wave. The company, which produces servers for Nvidia, reported record-high revenue for the first quarter.