(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s sales rose 34% in November, reflecting sustained growth from AI demand despite concerns that datacenter building will slow.
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The go-to chipmaker for Apple Inc. and Nvidia Corp. reported monthly sales of NT$276.1 billion ($8.5 billion). The combined sales in October and November rose 31.4%, based on Bloomberg’s calculations, while analysts project sales to grow 36.3% in the current quarter. TSMC’s shares are up about 80% so far this year.
The Taiwanese company is seen as a bellwether for the build-out of artificial intelligence data centers. Since ChatGPT was first launched in late 2022, TSMC and other AI hardware suppliers have enjoyed a boost from the massive spending on servers and data centers from big tech firms including Microsoft Corp. and Amazon.com Inc. But investors are growing concerned whether the spending will deliver returns as there is still a lack of a killer AI application.
Still, as its rivals Samsung Electronics Co. and Intel Corp. both struggle to gain traction in signing customers up to make their chips, TSMC could see pricing power ahead, according to Bloomberg Intelligence analyst Charles Shum.
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