Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM), the world’s preeminent chip manufacturer, reported a strong year-on-year performance for September.
The manufacturing partner of Nvidia, Apple and Meta recorded revenue of 251.87 billion new Taiwan dollars (£6 billion), marking a 39.6% increase from September 2023.
For the first nine months of 2024, TSMC's total revenue exceeded NT$2 trillion (£47.5 billion), representing a 31.9% growth compared to the same period in 2023.
These results easily beat market forecasts, said Reuters.
These results suggest sustained demand for high-performance computing hardware despite concerns that artificial intelligence-powered demand is beginning to taper off.
As the manufacturer of Apple’s iPhone chips, TSMC has also faced concerns over lukewarm global smartphone demand. This led to a slight downward revision to Taiwan’s growth forecasts in August.
That said, an official at the Directorate-General of Budget, Accounting and Statistics said that the time that “we maintain an overall positive outlook”, despite “reasons for uncertainty in the AI industry, such as the unknown schedule for high-end products to actually start shipping, and exactly how much growth we can expect to see in AI”.
TSMC shares are up nearly 90% year to date.