Title: Taiwan Semiconductor Manufacturing Co. Reports First Monthly Sales Gain Since February
Word Count: 365
Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a significant boost in its sales for the month of October, marking its first monthly sales gain since February. This positive trend indicates a gradual recovery in the global chip market, which has been impacted by the Covid-19 pandemic.
As news of the sales gain broke, TSMC’s shares soared by as much as 4.1% in heavy trading, representing the largest intraday rise since May. This surge reflects investors’ confidence in the chipmaker’s future prospects.
In October, TSMC reported a 15.7% increase in revenue, amounting to NT$243.2 billion ($7.5 billion). This milestone signifies the first time monthly sales have grown year-on-year since February, indicating a potential turnaround in the chip industry.
Despite the positive monthly figures, TSMC witnessed a decline of 3.7% in revenue for the first 10 months of the year, totaling NT$1.78 trillion. However, the CEO of TSMC, C. C. Wei, remains optimistic, stating that the chip market is expected to hit bottom soon after a period of post-Covid malaise.
The demand for chips powering large language models in the artificial intelligence (AI) sector has played a significant role in driving the recovery in the chip market. TSMC, as a primary chipmaker for prominent companies such as Nvidia Corp. and Apple Inc., is well-positioned to benefit from this trend.
Analysts have taken note of TSMC’s positive performance, with the sales projection for this quarter estimated to range between $18.8 billion and $19.6 billion, surpassing market expectations. To achieve the mid-point of this outlook, TSMC would need to generate approximately $11.7 billion in sales for the remainder of the year.
This recent sales gain for TSMC indicates a potential turnaround in the global chip market, signaling a positive trend for the semiconductor industry. As the demand for chips continues to rise, TSMC’s strong position and close partnerships with major technology companies position it for success in the coming months.
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