Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) saw its sales increase by 33% in August 2024. The contract chipmaker’s sales reached NT$250.9 billion ($7.8 billion) in August 2024, marking a 2.4% decrease from the previous quarter.
The year-over-year growth signals optimism about a recovery in the smartphone market and continued demand for Nvidia Corp.’s (NASDAQ:NVDA) AI chips, according to Bloomberg.
Related article: Semiconductor ETF takes hit, dragged down by Nvidia, AMD, Broadcom shares
Wall Street is hoping that Apple’s adoption of Wi-Fi 7 in the iPhone 16 and 16 Pro will help revive demand for mobile devices.
According to a Bloomberg report, analysts expect Taiwan Semiconductor’s third-quarter revenue to grow 37%. Recently, officials from Taiwan Semiconductor and Samsung Electronics (OTC:SSNLF) have expressed optimism about the AI industry.
Taiwan Semiconductor currently derives more than 50% of its revenue from high-performance computing, a business segment driven by AI demand. The Nvidia supplier is also a major maker of the central processor in Apple Inc.’s (NASDAQ:AAPL) iPhone.
The Arizona plant’s production volume is reportedly on par with that of the Taiwanese plant, signaling further optimism for the industry.
Taiwan Semiconductor’s shares have risen 82% over the past 12 months, and investors can get exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF) and the ProShares Nanotechnology ETF (NYSE:TINY).
Price Action: TSM shares were down 0.80% at last check on Tuesday, trading at $161.52 in pre-market trading.
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The article Taiwan Semiconductor’s Strong August Sales Point to Big Profits Going Forward, AI and iPhone Demand Fuel Optimism originally appeared on Benzinga.com.
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