Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) reported a significant 58% increase in sales for December, buoyed by strong demand from the rapidly expanding artificial intelligence (AI) sector.
In a statement released on Friday, TSMC revealed that its December sales reached T$278.16 billion ($8.44 billion), marking a 57.8% year-on-year increase. The sales growth was notably stronger compared to the previous month, signaling continued momentum in the chipmaker’s business.
For the fourth quarter, TSMC’s total revenue hit T$868.46 billion, a substantial rise from T$625.53 billion recorded in the same period last year. This growth reflects the ongoing surge in AI-driven chip demand, particularly from data centers and AI infrastructure, areas where TSMC continues to see elevated capital expenditures.
Despite the strong performance, TSMC remains cautious about the near-term outlook for consumer electronics, a sector that has been experiencing weaker chip demand. The company indicated that recovery in this area is unlikely in the immediate future, but its reliance on AI-related business continues to provide a stabilizing force for overall sales.
TSMC plays a critical role in the global semiconductor supply chain, manufacturing chips for a range of major technology companies. Among its largest clients is NVIDIA Corporation (NASDAQ:NVDA), which has been a key driver of AI-related chip demand over the past two years.
TSMC is scheduled to report its fourth-quarter earnings next week, and its performance continues to set a positive tone for chip demand as the industry heads into 2025.
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