China grows 34% in November, driven by high demand for AI chips, while rivals like Intel and Samsung struggle to stand out
Taiwan Semiconductor Manufacturing Co. Sales (TSMC) rose 34% in November, reflecting sustained growth in AI demand despite concerns that data center construction could slow.
The chipmaker of choice for Apple Inc. and Nvidia Corp. recorded monthly sales of NT$276.1 billion (US$8.5 billion).
Combined October and November sales grew 31.4%, based on Bloomberg calculations, while analysts project 36.3% growth in the current quarter. TSMC shares are up about 80% this year.
The Taiwanese company is seen as a bellwether for the construction of artificial intelligence data centers.
Since the launch of ChatGPT in late 2022, TSMC and other AI hardware vendors have benefited from huge spending by technology companies like Microsoft Corp. and Amazon.com Inc. in servers and data centers.
However, investors are increasingly concerned about whether the spending will generate returns, as there is still a lack of a “killer” AI application.
Still, while its rivals Samsung Electronics Co. and Intel Corp. are struggling to win customers to manufacture their chips, TSMC could see pricing power ahead, according to Bloomberg Intelligence analyst Charles Shum.
With information from Bloomberg*
Source: https://www.ocafezinho.com/2024/12/10/tsmc-domina-enquanto-rivais-como-samsung-e-intel-vacilam/
