TSMC Reports Strong Year-on-Year Revenue Growth

Investing.com– TSMC (TW:2330) (NYSE:TSM), the world’s biggest contract chipmaker, recorded a sharp year-on-year increase in revenue through November, spurred by strong AI-driven demand, although it experienced a slowdown compared to the prior month.

TSMC’s net revenue rose by 34% to T$276.06 billion ($8.52 billion) from T$206.03 billion last year.

However, revenue fell 12.2% from October’s figure of T$314.24 billion. Despite this, year-to-date revenue growth remained positive at 31.8%, marking a slight increase from the previous month.

The company has seen significant revenue growth over the past year, largely due to increasing demand from the rapidly growing artificial intelligence sector. However, investors are concerned about the sustainability of this growth, as the demand for new chips and data center development may eventually decline.

TSMC serves as a major supplier to AI giant NVIDIA Corporation (NASDAQ:NVDA) and recently projected that demand will remain strong through 2025.