TSMC’s Sales Increase 9.4% After AI Boost In The First 2 Months

(CTN News) – During the first two months of 2024, Taiwan Semiconductor Manufacturing Co.’s (TSMC) revenue grew 9.4% as it rode a wave of AI development that is expected to offset the impact of the slowing iPhone market.

From January through February, Asia’s largest TSMC company, NT$397.4 billion ($12.6 billion), reported revenues of NT$397.4 billion ($12.6 billion).

As a result, Apple Inc., which was responsible for 25% of Apple’s business last year, is now struggling to sustain the momentum for the iPhone, particularly in China, despite having accounted for 25% of Apple’s business in 2016.

As the main chipmaker for Nvidia Corp., TSMC is riding a wave of activity in artificial intelligence that accelerated recently after OpenAI rolled out its ChatGPT solution.

One of the principal beneficiaries of a recent rise in the development of large language models that require high-end chips is the world’s most advanced chipmaker.

As of this week, JPMorgan became the latest brokerage to raise its price target on the Taiwanese company, citing not only support for artificial intelligence, but also potential growth from Intel Corp. in the years to come.

Analysts such as Gokul Hariharan wrote in a recent report that TSMC was the “key enabler for almost all AI processing at the data center and the edge.”.

With Apple’s iPhone sales dropping 24% in China, Apple’s woes in the market are only getting worse

It was reported in January that TSMC executives expect a return to solid growth in the third quarter and give themselves the option to boost capital spending in 2024, which suggests an expected recovery in demand for smartphone and computing technology.

It follows years of stagnation in the industry, and many experts expect that to end in 2024 when this slump is expected to be overcome.

There is 11% of its sales that come from its second largest customer. Mark Li at Bernstein believes that AI chip market share will probably be taken up by Advanced Micro Devices Inc, which aims to gain some share of this market.

As far as TSMC is concerned, its top customers aren’t disclosed in the public domain.

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