Nvidia Supplier TSMC Says Semiconductor Industry Sales Could Grow 10% Amid AI Boom
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Key Takeaways
Nvidia and Apple supplier TSMC said it anticipates annual revenue growth of 10% for the global semiconductor industry amid surging demand for artificial intelligence (AI).
TSMC Senior Vice President Cliff Hou said the company is seeing strong AI server demand.
Hou said “this is a new golden age of opportunity with AI.”
Nvidia (
NVDA
) and Apple (
AAPL
) supplier TSMC (
TSM
) said Thursday it sees big sales gains for the industry because of soaring demand for
artificial intelligence (AI)
products.
The chipmaker’s
American depositary receipts (ADRs)
climbed 0.6% to a record high of $157.09 Thursday following the news. They’ve gained about 51% since the start of the year.
‘Golden Age of Opportunity With AI’
TSMC Senior Vice President Cliff Hou reportedly said at an event at the company’s headquarters in Hsinchu, Taiwan Thursday that TSMC anticipates 10% annual revenue growth for the global semiconductor industry, excluding memory chips. He added that the firm is seeing strong AI server demand, up about 2.5 times from last year.
Hou called this “a new golden age of opportunity with AI.”
Hou noted that the industry could also get a boost from a mild recovery in demand for smartphones and PCs, which had slumped because of too much
inventory
.
Hou said revenue for the foundry sector, which TSMC dominates, could expand at an annual rate of 15% to 20%.
