Taiwan Semiconductor Manufacturing Co (NYSE:TSM) clocked a 7.9% year-on-year revenue growth in January 2024 to NT$215.79 billion ($6.9 billion).
The critical Apple Inc (NASDAQ:AAPL) and Nvidia Corp (NASDAQ:NVDA) supplier experienced a sales increase in January, driven by strong demand for AI chips, which helped counterbalance the ongoing decline in consumer electronics, Bloomberg reports.
This uptick likely signals an impending recovery in the sector, with the critical contract chipmaker likely to lead the pack due to its advanced technology in AI chips.
TSMC has forecasted revenue growth of at least 8% for the March quarter, estimating revenues of $18 billion – $18.8 billion.
Despite this positive outlook, the technology sector still faces challenges, highlighted by Apple’s warning of a difficult quarter ahead and Hon Hai Precision Industry Co’s 21% decline in January sales.
Taiwan Semiconductor Manufacturing is expanding beyond Taiwan to the U.S., Germany, and Japan to help keep up with the growing demand for AI chips. Countries are collaborating with chip makers and designers to expand their semiconductor base.
In January, the Taiwanese chipmaker clocked a fourth-quarter revenue of $19.62 billion, down by 1.5% year-on-year, beating the consensus of $19.45 billion. EPS of $1.44 beat the consensus of $1.37.
Meanwhile, Big Tech companies, including Meta Platforms Inc (NASDAQ:META), Amazon.Com Inc (NASDAQ:AMZN), and Microsoft Corp (NASDAQ:MSFT) remain engaged in developing their in-house AI chips.
Price Action: TSM shares traded higher by 3.01% at $122.97 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
TSMC stock. Photo via Shutterstock
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