Chipmaker TSMC revenue surges 34% in Nov amid strong AI demand

Taiwan Semiconductor Manufacturing Co. (TSMC) reported on Tuesday a 34 per cent increase in November revenue, driven by robust demand for AI-related chips despite concerns about a potential slowdown in data centre construction.

The world’s largest contract chipmaker and key supplier for Apple Inc. and Nvidia Corp. posted monthly sales of NT$276.1 billion ($8.5 billion). Combined October and November sales rose 31.4 per cent, according to Bloomberg calculations, with analysts projecting overall quarterly sales growth of 36.3 per cent. TSMC shares have surged approximately 80 per cent this year.

Seen as a key player in the expansion of AI data centres, TSMC has benefited from massive investments in servers and infrastructure by tech giants such as Microsoft Corp. and Amazon.com Inc., spurred by the rise of applications like ChatGPT since late 2022.

While some investors are wary of whether these expenditures will yield significant returns amid the absence of a standout AI application, TSMC remains positioned to leverage its pricing power. Rivals like Samsung Electronics Co. and Intel Corp. continue to face challenges in gaining ground in the contract manufacturing space.

Attribution: Bloomberg