TSMC beats expectations: strong demand for AI chips and 39% revenue growth

Taiwan Semiconductor Manufacturing Company (TSMC), a major supplier of chips to Nvidia and Apple, reported an unexpected 39% increase in quarterly sales. The result allayed fears that the investment frenzy around artificial intelligence (AI) hardware could be slowing down. With total third-quarter sales of 759.7 billion Taiwan dollars (US$23.6 billion), TSMC beat analysts' estimates of 748 billion.

TSMC $TSM, the world's leading manufacturer of advanced chips and a key player in AI, is experiencing growth that exceeds market expectations. Its recent results show that demand for high-performance chips, especially those needed to train AI models, remains strong. This growth is partly driven by the race among global tech giants such as Meta, Google and Microsoft to build a robust AI development infrastructure.

TSMC is a key chip supplier to companies such as Nvidia, which makes high-end AI processors, and Apple, which sources chips from TSMC for its iPhones. Although there are concerns that…