AI

TSMC benefits from the AI boom: Record sales due to strong demand for high-performance chips

TSMC reports record revenues thanks to the AI boom and benefits from massive investments in data centers.

Eulerpool News Jan 12, 2025, 3:11 PM

The Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip contract manufacturer, benefited from increased demand for high-performance chips for artificial intelligence (AI) applications in the fourth quarter of 2024. The company reported revenue equivalent to 25.6 billion euros, exceeding analysts' expectations. TSMC manufactures chips for, among others, Nvidia and Apple, two key players in the field of AI and high-performance computing.

The growing demand for AI solutions drives the expansion of data centers, benefiting TSMC directly. Large IT companies like Alphabet and Microsoft are investing massively in their infrastructure to meet the increasing computing requirements. Microsoft recently announced that it will invest 80 billion US dollars in the expansion of its data centers in the current fiscal year. These investments are central to the development of AI applications that need to process and analyze enormous amounts of data.

TSMC is among the biggest winners of this trend. The company's stock price has more than doubled since the introduction of the AI chatbot ChatGPT by OpenAI at the end of 2022. The AI boom has significantly boosted the demand for specialized semiconductors, placing TSMC in a strategically favorable position to continue benefiting from the development.

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