(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s sales rose 34% in November, reflecting continued growth driven by demand for AI, despite concerns about delays in data center construction.
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The go-to chipmaker for Apple Inc. and Nvidia Corp. reported monthly sales of NT$276.1 billion ($8.5 billion). Analysts expect sales to rise 36.3% in the current quarter, after a combined sales increase of 31.4% in October and November, based on Bloomberg calculations. TSMC stock has increased about 80% since the beginning of the year.
Taiwanese companies are considered leaders in building artificial intelligence data centers. Since ChatGPT was first announced in late 2022, TSMC and other AI hardware suppliers have benefited from huge spending on servers and data centers by big tech companies like Microsoft and Amazon.com. .
Investors are increasingly concerned about whether this spending will pay off given the lack of definitive AI applications. Still, TSMC is expected to gain pricing power as rivals Samsung Electronics and Intel struggle to gain traction in contract manufacturing.
Bloomberg intelligence statement
TSMC’s November sales rose 34% year-on-year, with the company still on track to hit the upper end of guidance even as U.S. export restrictions halt supplies to Chinese AI chip designers. It suggests that there is. Strong demand for AI and high-end smartphone chips is driving growth, which is likely to continue through 2025. If the average two-month operating rate maintains 68.5%, as it has for the past three years, TSMC’s fourth-quarter sales could reach NT$861.5 billion.
-Charles Shum, Analyst
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–With assistance from Ville Heiskanen.
(Updates with analyst comment after 4th paragraph)
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