- AI continues to drive revenue growth
- Sales up nearly 32% year-to-date
- Stock has nearly doubled this year
AI demand continues to power chip sales for TSMC (TSM:NYSE), the world’s biggest contract chipmaker, which clocked a sharp year-on-year increase in revenue through November, even if growth slowed a little from October.
TSMC’s net revenue rose 34% to T$276.06 billion (approximately $8.52 billion) from T$206.03 billion last year. That may be lower than October’s T$314.24 billion yet year-to-date revenue growth remains upbeat at 31.8%.
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TSMC is a key supplier to AI chips champion Nvidia (NVDA:NASDAQ) and word that the company expects demand to remain robust going into 2025 will be something for optimists to hang on to in the face of some investors who are wondering how far and how long AI can continue to power growth.
TSMC has become a go to stock pick in the semiconductor and AI infrastructure space and it features near the top of holdings in popular tech trusts and funds, such as the Allianz Technology Trust (ATT) and the Polar Capital Technology Trust (PCT), which own stakes worth 3.4% and 5.2% of portfolios in TSMC respectively.
The New York listed TSMC ADRs (American Depository Receipts) have almost doubled in 2024 and pushed beyond the $200 mark for the first time in October. They are set to open at $196.75 when Wall Street reopens later today.
