Apple, Nvidia Supplier TSMC Posts 34% Jump in November Sales

In the dynamic world of technology, certain companies stand out as "best-of-breed," demonstrating resilience and strong management that makes them enduring investments. As interest rates rise, the market's reaction has been a decline in tech stocks, with Salesforce, ServiceNow, Apple, Facebook, and Amazon all feeling the impact. However, this shift in market sentiment presents an opportunity to reassess investment strategies and focus on sectors poised to benefit from the current economic environment, such as energy stocks and industrials.

TSMC, the world's largest contract chip manufacturer and a key supplier to Apple and Nvidia, has posted a 34% jump in November sales, driven by robust demand for AI-focused chips. This growth is a testament to the company's ability to adapt and capitalize on emerging trends in the tech industry. TSMC's commitment to invest billions in Arizona to manufacture Nvidia's AI chips further solidifies its position as a leader in advanced chip manufacturing.

TSMC's November sales surge, up 34% year-on-year, was significantly driven by Apple and Nvidia, key customers accounting for around 26% and 10% of TSMC's 2021 revenue, respectively. Apple's demand for AI-focused chips, particularly for its iPhones and Macs, and Nvidia's need for advanced AI processors, like the Blackwell chips, have fueled TSMC's growth. TSMC's commitment to invest billions in Arizona to manufacture Nvidia's AI chips further solidifies this partnership.



In this context, maintaining a balanced portfolio with both growth and value stocks is crucial for navigating the current market. It is essential not to hastily sell best-of-breed companies like Amazon and Apple during market downturns, as these companies have the capability to manage challenges effectively. While Facebook faces specific concerns related to advertiser pushback and content management issues, companies like Apple, Salesforce, and Amazon continue to demonstrate their ability to adapt and thrive in the face of adversity.

As an experienced English essay writing consultant, I am confident in the enduring value of companies like Apple, Salesforce, and Amazon, despite the current market conditions. However, it is crucial to remain cautious about Facebook and encourage decisive actions to address its content management challenges. As an investor, I hold positions in these companies and offer a service for investment alerts to help others make informed decisions in the ever-evolving tech landscape.