Taiwan Semiconductor Manufacturing Co's (NYSE:TSM) topline growth was 33% in August 2024. The contract chipmaker's sales reached NT$250.9 billion ($7.8 billion) in August 2024, implying a 2.4% sequential decline.

The year-on-year growth signaled optimism over smartphone market recovery and continued demand for Nvidia Corp's (NASDAQ:NVDA) AI chips, Bloomberg reports.

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Wall Street is betting on a bounce-back in demand for mobile devices backed by Apple's adoption of Wi-Fi 7 on the iPhone 16 and 16 Pro.

According to the Bloomberg report, analysts expect Taiwan Semiconductor's revenue to grow 37% for the third quarter. Recently, Taiwan Semiconductor and Samsung Electronics (OTC:SSNLF) officials expressed optimism for the AI industry.

Taiwan Semiconductor now earns more than 50% of its revenue from high-performance computing, a business segment driven by AI demand. The Nvidia supplier is also the leading manufacturer of the Apple Inc (NASDAQ:AAPL) iPhone's central processor.

Production yield at the Arizona facility is reportedly at par with that at its Taiwan facilities, signaling further optimism for the industry.

Taiwan Semiconductor stock has increased 82% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF) and the ProShares Nanotechnology ETF (NYSE:TINY).

Price Action: TSM stock traded lower by 0.80% to $161.52 premarket at the last check on Tuesday.