TSMC posts better-than-expected sales on AI demand

Revenue for the three-month period ending in September totalled NT$989.9 billion (US$32.5 billion), according to Bloomberg News calculations based on monthly sales numbers provided by the company, while analysts on average were looking for NT$962.8 billion.

The shares of Asia’s most valuable company have gained more than 30 per cent this year thanks to the prolonged AI euphoria.

The Taiwanese company is the go-to chipmaker for major AI accelerator designers including Nvidia, Advanced Micro Devices and Broadcom, and it also makes processors for iPhones and other Apple devices.

The consumer electronics market has registered little growth in recent times, but TSMC’s shift to more advanced manufacturing is making each unit sold more profitable.

On the AI front, US tech firms from Nvidia to OpenAI are spending billions of dollars to build up their cloud computing capabilities, which TSMC executives see as a major long-term growth driver.