Taiwan Semiconductor Manufacturing Co (TSMC) reported January sales growth of 37%, marking its sharpest rise in several months and indicating persistent strength in global spending on artificial intelligence hardware. The results outpaced the company’s forecast for annual growth and underscore the sustained demand for advanced chips despite market concerns about industry overheating.
According to figures released by TSMC, revenue in January reached NT$401.3 billion, up significantly from the prior year and substantially exceeding TSMC’s anticipated 30% growth for 2026. TSMC, which fulfills chip orders for major clients including Nvidia and Apple, has directly benefited from a global surge in investment tied to AI, particularly in high-performance AI accelerators.
The company has ramped up capital allocation this year, planning up to $52-56 billion in spending—a 27-37% increase over last year—with a focus on meeting heightened demand for data center semiconductors. Last week, Nvidia CEO Jensen Huang described this escalation of capital investments as a unique, large-scale infrastructure expansion.
Despite this momentum, the accelerated capital outlay by leading technology companies such as Amazon.com and Meta has raised caution among some investors. They question whether returns on AI spending will meet expectations, particularly as previous cycles of rapid investment in technology have led to market volatility. Some also note that many data center deals involve recurring or circular agreements, adding another layer of uncertainty.
While TSMC’s latest results point to sustained demand from the AI sector, market participants remain alert to possible risks linked to heavy infrastructure investments and the cyclical nature of technology spending.
