(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s sales rose 9.4% in the first two months of 2024, riding the wave of global AI developments and offsetting potential impact from weak iPhone sales. Contributing.
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Asia’s largest company reported sales of NT$397.4 billion ($12.6 billion) from January to February. That’s despite signs that Apple, which accounted for 25% of the company’s business last year, is struggling to maintain iPhone momentum, especially in China.
TSMC, Nvidia Corp.’s main chip maker, is riding the wave of artificial intelligence activity that has accelerated since OpenAI rolled out ChatGPT. The world’s most advanced chip maker is considered one of the companies that will benefit greatly from the increased development of large-scale language models that require high-end chips. This week, JPMorgan became the latest brokerage firm to raise its price target on the Taiwanese company, citing not only AI but also the possibility of business from Intel in the coming years.
Analysts including Gokul Hariharan wrote that TSMC is “an enabler for nearly all AI processing in the data center and at the edge.”
Read more: Apple’s iPhone woes in China worsen as sales plummet by 24%
Executives said in January that they expected a return to solid growth this quarter, with room for more capital spending in 2024, and that TSMC expected a recovery in demand for smartphones and computing. suggested. The outlook follows a multi-year recession that many industry observers expect to end in 2024.
The second largest customer accounts for 11% of sales. Bernstein analyst Mark Lee speculates that Advanced Micro Devices is aiming to grab a share of the AI chip market. TSMC has not disclosed the names of its major customers.
Read more: Broadcom chip sales fall below expectations despite growing AI demand
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