Semiconductor contract manufacturer and design company Taiwan Semiconductor Mfg. Co. Ltd. TSM reported a 39.2% jump in its two-month revenue for January and February in 2025 as compared to the same period last year.

What Happened: TSM reported on Monday that its February 2025 revenue rose 43.1% to $7.911 billion or NT$260.01 billion from $5.527 billion or NT$181.648 from the same month in the last year. This was aided by the robust demand of its chips used for artificial intelligence applications worldwide.

However, the company’s sales declined by 11.3% monthly as its January sales stood at $8.923 billion or NT$293.288.

Compared to the first two months of 2024, the sales rose by 39.2% in 2025 as the revenue increased from $12.092 billion or NT$397.433 billion to $16.835 billion or NT$553.297 billion for January and February combined.

See Also: US Economic Slowdown ‘Talk Of The Town,’ Says Economist Mohamed El-Erian As Fed Chair Powell Reaffirms Growth At ‘Solid Pace’

Why It Matters: The Taiwanese company is a major supplier of U.S.-based chipmaker Nvidia Corporation NVDA and it recently announced about $165 billion of investment in the U.S. to power the future of AI.

According to its press release, it plans to increase U.S. investment in advanced semiconductor manufacturing with three new fabs, two advanced packaging facilities, and an R&D center.

Over the four years, TSMC’s investment will create 40,000 construction jobs, tens of thousands of high-tech jobs, and drive over $200 billion in U.S. economic impact over 10 years, benefiting key tech clients.

In addition to its newly announced manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centers in Austin, Texas, and San Jose, California.

Price Action: Taiwan Semiconductor’s stock on the Taipei exchange closed 0.70% lower at TWD 998 or $30.35, whereas it rose 0.71% to $177.10 in the U.S. on Friday.

The U.S. listed stock remains 12.14% lower on a year-to-date basis, however, it's up 27.39% over a year.

Benzinga tracks six analysts with an average price target of $203.8 for the stock, reflecting a "hold" rating. Estimates range widely from $89 to $255. Recent ratings from Barclays, and Needham average at $235, suggesting a potential 32.76% upside.

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, advanced on Friday. SPY gained 0.56% to $575.92, and QQQ was up 0.74% to $491.79, according to Benzinga Pro data.

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