--- title: "AI giants are burning money like crazy, but Taiwan Semiconductor is \"hitting the brakes\": April revenue growth hits a six-month low" type: "News" locale: "en" url: "https://longbridge.com/en/news/285686121.md" description: "In April, Taiwan Semiconductor's revenue was NT$ 410.73 billion, a month-on-month decrease of 1.1% and a year-on-year increase of 17.5%, marking the lowest growth rate in the past six months. Despite the cooling performance in April, the cumulative revenue for the first four months reached NT$ 1.5448 trillion, with a year-on-year growth rate of 29.9%. Analysts expect the revenue growth rate in June to approach 35%. The demand for Taiwan Semiconductor's high-performance AI chips continues to drive overall revenue, and it has raised its capital expenditure target for 2026 to between $52 billion and $56 billion to address long-cycle dividends" datetime: "2026-05-08T08:07:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285686121.md) - [en](https://longbridge.com/en/news/285686121.md) - [zh-HK](https://longbridge.com/zh-HK/news/285686121.md) --- # AI giants are burning money like crazy, but Taiwan Semiconductor is "hitting the brakes": April revenue growth hits a six-month low According to the Zhitong Finance APP, Taiwan Semiconductor (TSM.US) achieved revenue of NT$410.73 billion in April, a decrease of 1.1% month-on-month. Although it realized a year-on-year growth of 17.5%, this is the smallest increase in the past six months, and compared to the significant surge of 45.2% in March, the year-on-year growth rate has notably narrowed. However, this growth only reflects 30 days of business activity, and its revenue will fluctuate monthly. Analysts expect the company's revenue growth rate for the June quarter to be nearly double the current rate, reaching about 35%. This monthly growth rate shift is largely due to the extremely high comparison base in March, when revenue surged to a historical high of NT$415.19 billion, driven by concentrated deliveries of AI chips and supply chain replenishment. Despite the cooling performance in April, the cumulative revenue for the first four months reached NT$1.5448 trillion, maintaining a year-on-year growth rate of 29.9%. This data indicates that, driven by sustained demand for AI-related chips, the overall revenue expansion trend of the company has not shown significant loosening. For investors, the cumulative growth performance may be more valuable as a reference than the monthly fluctuations. It is understood that under the macro backdrop where major cloud service providers such as Alphabet (GOOGL.US), Amazon (AMZN.US), Meta Platforms (META.US), and Microsoft (MSFT.US) are expected to invest over $725 billion in AI infrastructure this year, Taiwan Semiconductor, as a strategic choke point for computing power supply, maintaining high revenue levels is actually a key evidence of AI demand transitioning from conceptual expectations to solid implementation. Currently, advanced processes represented by 3nm and 5nm contribute nearly three-quarters of the company's sales, reflecting the rigid demand for extreme energy efficiency in high-performance AI chips, and further consolidating Taiwan Semiconductor's position as a barometer of prosperity in the semiconductor supply chain. To respond to this long-cycle dividend, Taiwan Semiconductor has strategically raised its capital expenditure target for 2026 to a range of $52 billion to $56 billion, focusing on advanced processes and advanced packaging capacities such as CoWoS. For the U.S. stock market, Taiwan Semiconductor's revenue trends are seen as the "overall meter of the AI industry." In the current context where the return on investment for tech giants' massive expenditures is under scrutiny, it plays a role in performance falsification and confidence support, setting an optimistic tone for the subsequent financial reports of chip giants like NVIDIA and Broadcom. However, the narrowing growth rate in April objectively reflects the current market reality contradictions. As April is traditionally a low season for the smartphone supply chain, the weakness in non-AI business has somewhat offset the incremental dividends from advanced processes, reminding investors to remain vigilant about fluctuations in traditional cycles ### Related Stocks - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md) - [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md) - [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Ballast Advisors LLC Grows Stock Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM](https://longbridge.com/en/news/285329026.md) - [Wealthfront Advisers LLC Invests $1.23 Million in Taiwan Semiconductor Manufacturing Company Ltd. $TSM](https://longbridge.com/en/news/285067190.md) - [MOVES-MediaTek hires former TSMC executive to boost AI chip packaging](https://longbridge.com/en/news/285020878.md) - [Verity Asset Management Inc. 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