TSMC, the world's largest chipmaker, reported its financial results for the previous quarter. The company exceeded its own expectations and proved that it is too early for investors to worry that the AI bubble might burst. This was reported by Bloomberg.
The Taiwanese company will publish its full financial report on Thursday, but it is already known that revenue amounted to NT$759.7 billion, or about $23.6 billion. According to preliminary forecasts, the revenue for the previous quarter should have amounted to NT$748 billion.
TSMC's results, which exceeded the company's expectations, may reassure investors who have become skeptical about artificial intelligence over the past few months. In particular, they were concerned about whether AI would continue to develop and gain momentum or whether the hype around the new technology would wane.
TSMC is a major chipmaker for NVIDIA, which supplies the world's most popular chips for training large language models. After the preliminary financial report, the Taiwanese company's shares rose by 0.4%, while NVIDIA's shares rose by 1.1%.
The Taiwanese chipmaker believes that spending on artificial intelligence by companies around the world will continue to be high despite the tense relations between the US and China. Tech giants from both countries, such as Microsoft and Baidu, will continue to invest in AI infrastructure to develop as many advanced programs and tools for consumers as possible.
As a reminder, TSMC's revenue in July 2024 amounted to $8 billion due to the high demand for artificial intelligence. The company earned 44.7% more than in the same period in 2023.