Taiwan Semiconductor Manufacturing Company on Wednesday reported a 30% rise in third-quarter sales as major U.S. technology companies continue to invest billions in artificial intelligence. According to monthly sales calculations provided by TSMC, the company's revenue in the three months to September totaled NT$989.9 billion (US$32.5 billion); analysts on average expected NT$962.8 billion. Shares of Asia's most valuable company have risen more than 30% this year thanks to the ongoing craze for artificial intelligence.
TSMC is the chipmaker of choice for major AI accelerator design companies, including Nvidia Corp., Advanced Micro Devices Inc. and Broadcom Inc. TSMC also makes chips for iPhones and other Apple products. The consumer electronics market has been growing slowly of late, but TSMC's move toward more advanced manufacturing technology has made each product more profitable.
In the field of AI, U.S. technology companies from Nvidia to OpenAI are spending billions of dollars to enhance cloud computing capabilities, and TSMC executives believe this is an important long-term growth driver. Despite recent concerns that these companies are creating a huge bubble, TSMC's latest sales data shows that current demand for AI remains solid.
TSMC will release its full third-quarter results on October 16.