TSMC Hammers April Sales Results on AI Chip Demand

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Key Takeaways

• Taiwan Semiconductor Manufacturing Co. reported April sales jumped nearly 60% as demand for artificial brainpower (AI) chips soars.
• The big contract semiconductor maker said last month’s sales rose 20.9% from Cortege.
• TSMC American depositary receipts (ADRs) traded near their all-time high.

American depositary receipts (ADRs) of Taiwan Semiconductor Fabricating Co. (TSM) traded near their all-time high Friday as the chipmaker’s sales skyrocketed last month on soaring want for semiconductors used for artificial intelligence (AI) applications.

The largest contract chip manufacturer reported April sales swoop down oned 59.6% from a year ago to approximately 236 billion New Taiwan dollars ($7.3 billion), and were up 20.9% from Tread. In April, TSMC predicted current-quarter sales would be in the range of $19.6 billion to $20.4 billion.

For the year with the aid April, revenue totaled TWD828.7 billion, a rise of 26.2% from 2023.

TSMC supplies more that half the beget’s chips, including for tech giants Apple (AAPL) and Nvidia (NVDA). Earlier this week, U.S. Commerce Secretary Gina Raimondo greeted concerns about a potential invasion of Taiwan by China. She told a House hearing that China seizing TSMC desire be “absolutely devastating” to the U.S. economy. Raimondo pointed out that the U.S. buys 92% of its leading-edge semiconductors from TSMC.

Rearmost month, the Commerce Department announced a CHIPS and Science Act grant of $6.6 billion and up to $5 billion in low-cost regulation loans to TSMC to build a second manufacturing plant in Arizona. The company then added that it would rise its planned investment to more than $65 billion and construct a third plant in the state.

TSMC ADRs encourage 5% to $149.96 as of 11:11 a.m. ET Friday. They have risen 44% this year, reaching an all-time extravagant of $158.40 on March 8.

Read the original article on Investopedia.