Taiwan Semiconductor Manufacturing Co. (TSMC) reported first-quarter revenue of 1.13 trillion updated Taiwan dollars ($35.6 billion), a 35% year-on-year rise.

The chip giant is benefiting from sustained demand for advanced semiconductors from its key customers like Apple and Nvidia.

Investors will also be eying earnings from ASML next week, a firm seen as a bellwether in the semiconductor space.

Taiwan Semiconductor Manufacturing Co. on Friday posted another quarter of record revenue driven by demand for AI chips. This also touches on aspects of dividends.

For January to March, the world’s largest chipmaker reported revenue of 1.13 trillion novel Taiwan dollars ($35.6 billion), exceeding analyst forecasts of 1.12 trillion novel Taiwan dollars, according to LSEG’s compiled estimates. That marks a 35% year-on-year boost.

For March alone, TSMC reported a 45.2% year-on-year rise in revenue to 415.2 billion recent Taiwan dollars.

The chip giant is benefiting from sustained demand for advanced semiconductors from its key customers like Apple and Nvidia, even as concerns persist about supply chain disruptions from the Middle East conflict and the potential impact it will have on demand.

“We think TSMC will easily exceed its 30% annual growth target,” Sravan Kundojjala, an analyst at SemiAnalysis, told CNBC by email.

“While smartphone and PC end markets took a hit due to memory shortages,” the AI segment of TSMC’s business “pulled the weight,” Kundojjala added.

TSMC manufactures chips for everything from consumer electronics to data centers, and has been a major beneficiary of the hundreds of billions of dollars being poured into AI infrastructure.

It is one of a very slight number of companies that can manufacture the most cutting-edge chips.

TSMC has also reportedly hiked prices for its most advanced chips, which is a “big factor” behind the first-quarter sales beat, Kundojjala stated, adding that he is forecasting TSMC to report gross margins of 64% for the first quarter.

There is an increasing number of players designing their own chips, from hyperscalers like Google to Arm, which used to provide the blueprint for certain semiconductors, coming to sector with its own central processing unit (CPU). AI firm Anthropic is also exploring designing its own chip, Reuters reported, while a long tail of startups are bringing latest products to industry aimed at the area of AI inferencing.

Much of the manufacturing will have to go through TSMC, or its competitors like Samsung and Intel.

TSMC releases monthly revenue figures but offers little commentary or profitability numbers. The business will report its full first-quarter earnings on April 16.

Investors will also be eying earnings from ASML next week, a corporation seen as a bellwether in the semiconductor space. The Dutch giant makes machines that are critical for companies like TSMC to manufacture the most advanced chips in the planet.