The artificial intelligence boom is paying off significantly for TSMC, the world’s largest contract chipmaker. The company reported on Thursday that its third-quarter revenue soared by an incredible 30% from last year, easily beating market forecasts. The surge is being driven by the massive demand for the advanced chips that power AI.
For the July-September quarter, TSMC brought in a staggering T$989.92 billion (about $32.47 billion), blowing past analysts’ expectations. The company, whose biggest customers include AI king Nvidia and the tech giant Apple, has been a major winner in the AI revolution. While the demand for chips in everyday electronics like tablets has slowed down since the pandemic, the insatiable appetite for AI has more than made up for it.
The strong results have sent TSMC’s stock soaring. Its shares are up 34% so far this year, easily beating the broader market. The good news isn’t just limited to TSMC. Foxconn, the world’s largest electronics maker and the biggest builder of Nvidia’s servers, also reported its highest-ever revenue for the third quarter, another clear sign of just how massive the AI boom has become.
TSMC will release its full earnings report later this month, providing a clearer picture of its outlook for the rest of the year. But for now, the message is loud and clear: AI is big business, and TSMC is at the very center of it.
