TSMC's November sales rose 34% YoY as AI demand remains strong

Market IntelTuesday, Dec 10, 2024 2:30 am ET

1min read

TSMC's November sales rose 34% year-on-year, reflecting continued growth in AI demand despite concerns about a slowdown in data center construction. The company reported sales of T$276.1bn ($8.5bn) for the month. Calculated, combined sales in October and November rose 31.4%, while analysts expect a 36.3% rise for the quarter.TSMC is seen as a leader in AI data center construction. Since the first launch of ChatGPT at the end of 2022, TSMC and other AI hardware suppliers have benefited from large tech companies such as Microsoft and Amazon spending heavily on servers and data centers. But investors are increasingly worried about whether these spending will pay off, as there is still a lack of killer AI applications.Industry research analyst Charles Shum said TSMC may gain pricing power in the future as its competitors, Samsung Electronics and Intel, struggle to attract customers for their chip production.

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