TSMC Reports 34% Revenue Surge in November, Driven by AI Chip Demand

TSMC posts 34% revenue jump in November, riding high on AI demand

In brief: Taiwan Semiconductor Manufacturing Company just released its November numbers, showing that it earned NT$276 billion (that's US$8.5 billion) for the month. This marks a staggering 34% increase compared to the same period last year. It's no secret that multiple semiconductor businesses are recording some of their highest-ever revenues right now, thanks to the demand for AI chips going through the roof. And TSMC's leadership in cutting-edge process nodes like 5nm and 3nm has made it a hot commodity for AI firms and tech titans like Apple. The company has been smart too, doubling down on advanced packaging tech like CoWoS (Chip on Wafer on Substrate), which is essential for manufacturing AI processors. It's no wonder TSMC expects revenue to reach $26.9 billion in the final quarter this year - an 11-14% quarterly jump. There was also a 12.2% slide from October's record-breaking NT$314 billion revenue, though that's minor in the face of an overall bumper year. From January through November, TSMC amassed a mountain of revenue standing at NT$2.61 trillion. Do the math and that translates to a 31.8% annual growth rate. This is especially impressive for a year plagued by economic turmoil that's resulted in industry-wide layoffs. Investors are understandably stoked, sending TSMC shares surging after the report was released. TSMC expects demand to only go up from here and is spending billions to build new factories overseas, including $65 billion on three plants in Arizona, US. The chipmaker also revealed in the October earnings call that its production capacity for CoWoS technology is set to double year-over-year in both 2024 and 2025. However, it added that demand is so strong it still can't manufacture fast enough to meet it. Not everyone is convinced about the sustainability of demand in the future, though. Big tech's massive AI investments are yet to pay dividends, so some investors are understandably anxious that the spending bonanza will fizzle out. That doesn't seem to be stopping TSMC though, especially since rivals like Samsung and Intel are struggling to catch up on the cutting edge.

TSMC posts strong year-on-year revenue growth of 34% despite month-to-month slowdown -- foundry pulls in $8.5B in revenue for November 2024

The company's stock has surged nearly 80% year-to-date, reflecting its robust business growth. Taiwan Semiconductor Manufacturing Company (TSMC) reported a consolidated revenue of NT$276.058 billion (US$8.504 billion) for November 2024. This represents a 34% year-over-year increase, bolstered by continued strong demand for AI chips. However, revenue declined 12.2% from October's record NT$314.24 billion, marking the first time the company exceeded NT$300 billion in monthly revenue. For the year-to-date period (January to November 2024), TSMC's revenue reached NT$2.61 trillion, reflecting a 31.8% annual growth. TSMC credits this performance to its leadership in advanced process nodes such as 5nm and 3nm. It is fully utilized to meet the surging demand from AI-related industries and major clients like Apple. Industry analysts noted that TSMC's consistent ability to scale advanced manufacturing processes has made it a critical supplier for sectors transitioning to AI-centric operations. This aligns with TSMC's increased focus on CoWoS (Chip on Wafer on Substrate) advanced packaging services essential for high-performance AI applications. TSMC's fourth-quarter revenue is projected to range between US$26.1 billion and US$26.9 billion (NT$835.2 billion to NT$860.8 billion), indicating an 11%-14% quarter-over-quarter increase. The company is expected to achieve this target comfortably, with cumulative October-November revenue totaling NT$590.298 billion. For December, revenue would need to hit just NT$270.5 billion to meet the high end of its guidance. Following the revenue report, TSMC's stock price demonstrated strong performance, reinforcing investor confidence in the company's growth trajectory despite broader economic uncertainties. Analysts have pointed out that TSMC's dominance in high-performance computing and AI markets shield it from the cyclical pressures affecting traditional semiconductor markets.

TSMC Posts 34% Sales Growth in November on Sustained AI Demand

Taiwan Semiconductor Manufacturing Co.'s sales rose 34% in November, reflecting sustained growth from AI demand despite concerns that datacenter building will slow. The go-to chipmaker for Apple Inc. and Nvidia Corp. reported monthly sales of NT$276.1 billion ($8.5 billion). The combined sales in October and November rose 31.4%, based on Bloomberg's calculations, while analysts project sales to grow 36.3% in the current quarter. TSMC's shares are up about 80% so far this year.

Taiwan Semi November Revenue Ups 34% Strengthened by AI and Smartphone Demand - Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co TSM reported a topline growth of 34% year-on-year to $8.55 billion in November 2024. Revenue for January through November 2024 grew by 31.8% year over year to $81.05 billion, testimony to the continued artificial intelligence frenzy. The contract chipmaker's market share grew to 64.9%, up from 62.3% Q/Q, helping it retain the top position in the global wafer foundry business. This is due to the smartphone and AI-related demand for its 3nm and 5nm technologies thanks to clients like Apple Inc AAPL and Nvidia Corp NVDA. Also Read: Google Quantum AI's New Willow Chip Can Do in Minutes That Supercomputers Would Take 10 Septillion Years Taiwan Semiconductor's performance reflects the chipmaker's production capacity utilization and wafer shipment boost. Meanwhile, Samsung Electronics SSNLF bore the brunt of competition from Chinese rivals for advanced technology, with its market share falling to 9.3% in the quarter, down from 11.5% Q/Q. Taiwan Semiconductor stock is up over 96% year-to-date. The chipmaker is extending its footprint beyond Taiwan to help countries develop their semiconductor moat instead of depending solely on China. Recent reports indicated Nvidia is exploring the production of the Blackwell AI chips at Taiwan Semiconductor's Arizona plant. Apple and Advanced Micro Devices Inc AMD are already customers of Arizona's Taiwan Semiconductor chip plant. The chipmaker has manufactured Nvidia's Blackwell chips in its Taiwan facilities, where its chip-on-wafer-on-substrate (CoWoS) capacity exists. Taiwan Semiconductor has maintained its key advanced technology production facilities in Taiwan, which renders it vulnerable to geopolitical risks. Investors can gain exposure to Taiwan Semiconductor through iShares Semiconductor ETF SOXX and First Trust NASDAQ Technology Dividend Index Fund TDIV. Price Action: TSM stock closed lower by 0.36% at $198.45 premarket at the last check on Tuesday. Also Read: Broadcom Likely For Upside Backed By AI Pipeline, Market Recovery, VMWare Synergy: Analyst Image via Shutterstock Market News and Data brought to you by Benzinga APIs

TSMC revenue surges 34% in Nov, but slows from prior month By Investing.com

Investing.com-- TSMC (TW:2330) (NYSE:TSM), the world's biggest contract chipmaker, clocked a sharp year-on-year increase in revenue through November on strong AI-fueled demand, although revenue still slowed from the prior month. TSMC's net revenue rose 34% to T$276.06 billion ($8.52 billion) from T$206.03 billion last year. But revenue fell 12.2% from October's reading of T$314.24 billion. Year-to-date revenue growth still remained upbeat at 31.8%, increasing slightly from the prior month. TSMC has seen an exponential jump in revenue over the past year on increasing demand from the fast-growing artificial intelligence industry. But investors have questioned just how long this growth can be sustained, given that data centre building and demand for new chips is expected to slow eventually. TSMC is a key supplier to AI major NVIDIA Corporation (NASDAQ:NVDA), and recently said it expects demand to remain robust going into 2025.

Apple, Nvidia Supplier TSMC Posts 34% Jump in November Sales

U.S.-listed shares of TSMC are slipping in premarket trading but have almost doubled this year. Taiwan Semiconductor Manufacturing Co. (TSM) posted a 34% year-over-year jump in November sales, showing that demand for its artificial intelligence (AI)-focused chips remains strong. The company, which supplies tech heavyweights such as Apple (AAPL) and Nvidia (NVDA), reported November sales of 276.06 billion New Taiwan dollars ($8.48 billion). Still, the sales numbers were down 12% from October's figures. However, revenue between January and November has jumped 32% year-over-year to NT$2.62 trillion. The numbers come after TSMC in October projected a buoyant outlook, with Chief Executive Officer (CEO) C.C. Wei calling the demand for AI "real" in the third-quarter earnings call, according to a transcript provided by AlphaSense. Tech companies have dramatically increased their spending on AI infrastructure this year as they've raced to satisfy surging demand for the emerging technology as well as cloud computing, but investors have been worried that the huge investments may not pay off. U.S.-listed shares of TSMC, the world's largest contract chip manufacturer, are falling about 1% in premarket trading but have almost doubled this year.