Stock Markets March 11, 2026

TSMC Stock Climbs After February Sales Show Strength in AI-Related Chip Demand

Monthly revenue rebounds year-on-year despite a seasonal dip from January tied to Lunar New Year

By Maya Rios AAPL NVDA AMD
TSMC Stock Climbs After February Sales Show Strength in AI-Related Chip Demand
AAPL NVDA AMD

Shares of Taiwan Semiconductor Manufacturing Co. rose in Taipei after the company reported February revenue of NT$317.66 billion, a 22.2% increase from a year earlier. The monthly figure fell 20.8% from January because of seasonal effects around the Lunar New Year, while aggregate revenue for January-February 2026 reached NT$718.91 billion, up 29.9% year-on-year, reflecting strong demand from technology firms investing in AI infrastructure and next-generation computing.

Key Points

  • February revenue was NT$317.66 billion ($10.02 billion), up 22.2% year-on-year but down 20.8% from January due to seasonal Lunar New Year effects.
  • Shares in Taipei rose over 5% to NT$1,950 following the sales report.
  • Total revenue for January-February 2026 reached NT$718.91 billion, up 29.9% year-on-year, driven by demand from companies building AI infrastructure and next-generation computing systems.

Market reaction

Taiwan Semiconductor Manufacturing Co. (TW:2330) saw its Taipei-listed shares move higher following the release of monthly sales data. Traders pushed the stock up by more than 5% to close at NT$1,950 after the company posted stronger year-on-year sales for February, driven by continued demand for advanced chips used in AI computing.

February sales and monthly change

TSMC reported revenue for February of NT$317.66 billion, equivalent to roughly $10.02 billion. That represents a 22.2% increase versus February of the prior year. The company also recorded a decline of 20.8% from January, a drop the company attributed largely to seasonal factors tied to the Lunar New Year period.

Performance through the start of 2026

Combined revenue for the first two months of 2026 totaled NT$718.91 billion, marking a 29.9% increase on a year-on-year basis. The company described this early-year gain as reflecting robust demand from technology customers that are building AI infrastructure and next-generation computing systems.

Customer exposure and product focus

TSMC is a principal contract manufacturer for a range of major technology firms. The company supplies cutting-edge chips used across smartphones, data centers and AI systems to customers including Apple (AAPL), Nvidia (NVDA) and Advanced Micro Devices (AMD). Those client relationships and product lines are key to the revenue trends reported in the monthly figures.

Context for investors

Investors reacted positively to the stronger year-on-year sales figures, while the month-to-month decline underlines the seasonal volatility the company experiences. The combination of significant year-on-year growth and short-term monthly swings is likely to remain a focal point for market participants assessing the company's near-term performance and exposure to demand for AI-related technology.

Risks

  • Seasonal volatility - monthly revenue can decline sharply around the Lunar New Year, as shown by the 20.8% drop from January to February. This affects semiconductor and broader technology hardware sectors.
  • Concentration of demand - a significant portion of sales is tied to large technology customers building AI and next-generation computing, which creates exposure for the semiconductor sector and related markets if demand patterns shift.
  • Short-term monthly swings - despite strong year-on-year gains, month-to-month variability may create earnings and cash-flow visibility challenges for investors and markets tracking chipmakers.

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