(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s revenue rose 34% in November, reflecting continued growth in AI demand despite concerns that data center construction will slow.
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The go-to chipmaker for Apple Inc. and Nvidia Corp. reported monthly revenue of NT$276.1 billion ($8.5 billion). Combined sales in October and November rose 31.4%, based on Bloomberg calculations, while analysts expect sales to grow 36.3% in the current quarter. Shares of TSMC are up about 80% so far this year.
The Taiwanese company is seen as a driving force in the expansion of data centers for artificial intelligence. Since ChatGPT first launched in late 2022, TSMC and other AI hardware vendors have been boosted by massive spending on servers and data centers from major tech companies, including Microsoft Corp. and Amazon.com Inc. will yield returns as there is still a lack of a great AI application.
Still, according to Bloomberg Intelligence analyst Charles Shum, TSMC would be ahead, while its rivals Samsung Electronics Co. and Intel Corp. both struggle to gain traction in signing up customers to make their chips, can expect pricing power.
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