AI Chip Boom: TSMC is a major chipmaker responsible for around 90% of the world’s advanced chips, particularly those used by Nvidia and Apple.
TSMC reported that its revenue for March reached 195.2 billion new Taiwan dollars ($6.1 billion), up by 34.3% compared to the previous year. This marks the fastest growth since November 2022. Read also AI Chip: The Brains Behind the Future (2024 Guide)
For the first quarter, TSMC’s revenue totaled 592.6 billion new Taiwan dollars, showing a 16.5% increase compared to the same period last year.
The company’s value has more than doubled since October 2022, mainly due to the high demand for its AI chips. TSMC expects to maintain strong growth this year, driven by the boom in AI chip sales. It anticipates a 50% annual increase in AI revenue. Read also Microsoft to Open New AI Hub in London
TSMC’s stock has been performing well, with a more than 43% increase so far this year and over 63% over the past 12 months. Additionally, it has received funding from the federal CHIPS and Science Act to support its chipmaking efforts in the U.S., including a significant investment in a chipmaking hub in Phoenix. This funding will help TSMC expand its production capabilities and contribute to the U.S.’s goal of producing 20% of the world’s advanced chips by 2030.
ompetition in the market is intensifying, with AMD launching a competing chip to Nvidia’s last year, and Intel unveiling its latest AI offering recently.
Several startups are also developing AI chips, which TSMC manufactures for some companies.
Investors are optimistic about TSMC’s future, with its shares rising nearly 40% this year, as they anticipate continued demand for AI chips boom.
In January, TSMC announced that its AI revenue is growing at a rate of 50% annually. Analysts predict a 23.7% increase in total revenue for TSMC this year, according to LSEG consensus estimates, following a decline in 2023.