TSMC’s sales figures are better than expected, which is a good sign for demand for AI chips
The Taiwan Semiconductor Manufacturing Co. (TSMC) posted a better-than-expected 39 percent increase in quarterly revenue, easing concerns that spending on AI hardware is starting to decline.
The leading chipmaker of Nvidia and Apple reported revenues of TWD 759.7 billion (approximately Rs. 1,97,885 crore) in the September quarter, while the average projection of TWD was $748 billion (approximately Rs. 1,94,838 crore). Taiwan’s largest company will announce its full results next Thursday.
The better-than-expected performance may reinforce the views of investors who are betting that AI spending will remain high as companies and governments race for an edge in the emerging technology. Others warn that companies like Meta Platforms and Alphabet’s Google cannot sustain the current pace of infrastructure spending without a compelling and monetizable AI use case.
Hsinchu-based TSMC is one of the key companies at the center of the global surge in AI development spending, producing the cutting-edge chips needed to train artificial intelligence. Revenue has more than doubled since 2020, with the groundbreaking launch of ChatGPT sparking a race to acquire Nvidia hardware for AI server farms.
Shares of Nvidia rose about 1.2 percent in premarket trading in New York on Wednesday, while TSMC’s U.S.-traded ADRs rose a more modest 0.8 percent.
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