TSM's stock hit a new high. Can AI demand really last for years as the CEO claimed?

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Jessica Amir joined discussion · Oct 17 14:35

TSMC’s profit beat expectations amid the AI chip Boom | A win for the chips not just TSMC

Breaking news here. TSMC's quarterly profit rose 54% to NT$325.3 billion (US$10.1 billion) seeing growth across most of its divisions. So, this could be seen as a win, not just for TSMC but for Nvidia $NVIDIA (NVDA.US)$ and Apple $Apple (AAPL.US)$ in particular.

TSMC is the key chipmaker to Apple $AAPL, accounting for 25% of TSMC's revenue and Nvidia $NVIDA, accounting for 10% of TSMC revenue. So given TSMC revenue from smartphones rose 16%, 35% for IoT, and 6% for automotive, as it tells us good news and strength might be seen in their reports from Apple, Nvidia and maybe Tesla $Tesla (TSLA.US)$ as well.

TSMC, Taiwan’s largest company raised its outlook for 2024 revenue in July, underscoring expectations for sustained spending on AI infrastructure from the likes of Microsoft and Amazon. Steady adoption of artificial intelligence should also help fuel sales of iPhones and other gadgets.

Still, investors will be watching for deviations in chip outlooks after major supplier ASML $ASML Holding (ASML.US)$ reported only half the orders analysts expected.

We don't get Apple and Nvidia's results till Oct 31 & Nov 20.