(Bloomberg) — Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes in the longevity of a global boom in AI spending.
TSMC, the go-to chipmaker for Apple Inc. (AAPL) and Nvidia Corp. (NVDA), now foresees mid-30% growth in annual sales, up about a few percentage points from previously. The outlook hike was striking given Taiwan’s biggest company last raised its guidance just three months ago, igniting a rally that’s tacked on more than $260 billion to its market value.
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The results underscore how TSMC remains one of the bigger beneficiaries of a spending spree on AI infrastructure that’s expected to cross the $1 trillion mark in coming years. From OpenAI to Oracle Corp., industry leaders are racing to build the data centers that underpin the technology in the post-ChatGPT era. TSMC’s higher projection followed a better-than-anticipated 39% jump in net income to NT$452.3 billion ($14.8 billion) in the September quarter.
On Thursday, TSMC Chief Executive Officer C.C. Wei reiterated his industry was grappling with geopolitical uncertainty, and acknowledged how US sanctions have begun to close off swathes of China, the world’s largest semiconductor arena. Businesses across the global semiconductor supply chain are bracing for disruptions after Beijing imposed curbs on rare-earth mineral exports — essential to most technology devices — and the US responded with additional tariffs and restrictions on software sales to the Asian nation.
But Wei argued that AI demand would make up for that lost market. “Conviction in the AI megatrend is strengthening,” he told analysts after outlining earnings. “The AI demand actually continues to be very strong, stronger than we thought three months ago.”
As the world’s most advanced manufacturer of semiconductors, TSMC plays a dominant role in an AI investment frenzy with Nvidia at its heart. The US company makes the powerful accelerators vital to the training and operation of AI services like ChatGPT and Google’s Gemini.
Yet that investment rush, coupled with a rapid climb in tech stock valuations, has drawn comparisons to the dotcom bubble given the persistent absence of mainstream AI applications and services. TSMC is in constant touch with customers to try and map out future demand and plan for capacity expansion, Wei said.
(Bloomberg) — Taiwan Semiconductor Manufacturing Co. (TSM, 2330.TW) hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes in the longevity of a global boom in AI spending.
TSMC, the go-to chipmaker for Apple Inc. (AAPL) and Nvidia Corp. (NVDA), now foresees mid-30% growth in annual sales, up about a few percentage points from previously. The outlook hike was striking given Taiwan’s biggest company last raised its guidance just three months ago, igniting a rally that’s tacked on more than $260 billion to its market value.
Most Read from Bloomberg
The results underscore how TSMC remains one of the bigger beneficiaries of a spending spree on AI infrastructure that’s expected to cross the $1 trillion mark in coming years. From OpenAI to Oracle Corp., industry leaders are racing to build the data centers that underpin the technology in the post-ChatGPT era. TSMC’s higher projection followed a better-than-anticipated 39% jump in net income to NT$452.3 billion ($14.8 billion) in the September quarter.
On Thursday, TSMC Chief Executive Officer C.C. Wei reiterated his industry was grappling with geopolitical uncertainty, and acknowledged how US sanctions have begun to close off swathes of China, the world’s largest semiconductor arena. Businesses across the global semiconductor supply chain are bracing for disruptions after Beijing imposed curbs on rare-earth mineral exports — essential to most technology devices — and the US responded with additional tariffs and restrictions on software sales to the Asian nation.
But Wei argued that AI demand would make up for that lost market. “Conviction in the AI megatrend is strengthening,” he told analysts after outlining earnings. “The AI demand actually continues to be very strong, stronger than we thought three months ago.”
As the world’s most advanced manufacturer of semiconductors, TSMC plays a dominant role in an AI investment frenzy with Nvidia at its heart. The US company makes the powerful accelerators vital to the training and operation of AI services like ChatGPT and Google’s Gemini.
Yet that investment rush, coupled with a rapid climb in tech stock valuations, has drawn comparisons to the dotcom bubble given the persistent absence of mainstream AI applications and services. TSMC is in constant touch with customers to try and map out future demand and plan for capacity expansion, Wei said.
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