Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) reported 30% sales growth in the first two months of the year, supported by strong spending on artificial intelligence infrastructure before the Middle East conflict began.
The company said revenue for January and February reached 718.9 billion New Taiwanese dollars ($22.6 billion).
February sales rose 22%. This 22% increase was a significant slowdown from the 36.8% year-on-year growth recorded in January 2026.
The growth rate appeared skewed because the Lunar New Year fell in January 2025, which shifted the comparison base for February and made the year-over-year increase in February 2026 appear less representative.
The contract chipmaker supplies chips to companies like Nvidia Corp. (NASDAQ:NVDA).
Major technology companies, including Alphabet Inc. (NASDAQ:GOOGL) and Amazon.com Inc. (NASDAQ:AMZN), have planned spending of more than $650 billion this year to fuel their artificial intelligence infrastructure.
Geopolitics And Export Policy Pressure Semiconductor Stocks
Semiconductor stocks, including major technology companies, fell on Friday as investors reacted to new U.S. export policy discussions and rising tensions linked to the U.S.–Iran conflict.
Shares of chipmakers, including Nvidia, Advanced Micro Devices, Inc. (NASDAQ:AMD), and Taiwan Semiconductor, declined, while major tech companies such as Amazon and Alphabet also traded lower.
The PHLX Semiconductor Index dropped more than 2% and the Nasdaq Composite fell nearly 2%.
Uncertainty grew after reports that the Trump administration is considering new rules governing the export of advanced AI chips, potentially requiring countries seeking large shipments to invest in U.S. AI data centers or provide security guarantees, along with possible licensing, monitoring, and software restrictions.
Middle East Conflict Raises Supply Chain Risks
At the same time, the Middle East conflict raised concerns about semiconductor supply chains, including the risk of disruptions to materials such as helium, which is used to manage heat during chip manufacturing.
The tensions also created risks for AI infrastructure projects, after Amazon said drone strikes damaged some of its data centers in the United Arab Emirates and Bahrain.
Meanwhile, CNBC’s Jim Cramer urged investors to remain cautious and avoid panic selling during the sector’s volatility.
TSM Price Action: Taiwan Semiconductor shares were up 1.17% at $352.77 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by Jack Hong via Shutterstock
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