Taiwan Semiconductor Manufacturing Co. (TSMC) recorded revenue growth in the first two months of the current year.

The specified result is due to the process of artificial intelligence development at the global level. Currently, this process shows growth in terms of the quantity parameter and the context of the quality parameter. AI systems are gaining new cognitive abilities. The list of functions related to generating content in various formats, and digital products based on artificial intelligence is also expanding. At the same time, the number of AI models is increasing. Moreover, the emergence of new startups in the artificial intelligence industry and the intensification of the efforts of technology giants in the appropriate direction are being recorded. For the functioning and training of machine intelligence models, chips are needed, one of the world’s largest manufacturers of which is TSMC.

The revenue of the Taiwanese maker microcircuits in January-February showed an increase of 9.4% compared to the result for the same period in 2023. The total value of the company’s products sold during the first two months of the current year was $12.6 billion.

It is worth noting that the increase in revenue of the specified chip manufacturer was recorded when Apple, which accounted for 25% of all TSMC orders in 2023, faced a problem in the form of a decrease in consumer demand for iPhones in the Chinese smartphone market. This is an important circumstance since the chips for the mentioned product of the technology giant from the United States also are produced by a Taiwanese firm. Apple is currently seeking to restore the dynamic of iPhone sales in China.

TSMC is also the main chip manufacturer for Nvidia, which has become one of the main beneficiaries of the so-called artificial intelligence boom. Currently, the market capitalization of this client of the Taiwanese company exceeds the historical mark of $2 trillion. Nvidia specializes in the development of chips. This company is the developer of advanced microcircuits. Nvidia chips are necessary for the training and further functioning of large language models.

This week, JPMorgan became the latest brokerage to raise TSMC’s target price. Experts of the financial institution, commenting on the mentioned decision, mentioned the active development and expansion of artificial intelligence. They also paid special attention to Intel’s potential AI-related business. This company has significant ambitions in the relevant direction.

Analysts, including Gokul Hariharan, claim that TSMC is the enabler for almost all data processing using artificial intelligence.

In January, the executives of the Taiwanese company announced their expectations of steady growth in the first quarter of 2024. Confidence in the implementation of the corresponding scenario is significant, as evidenced by the fact that TSMC increased its capital expenditures for the current year. The company is betting on the recovery of consumer demand for smartphones and computing equipment. This forecast is a kind of expectation that the long-term downturn in the sphere of electronics in terms of commercial performance is nearing its end. It is worth noting that many players in the mentioned area agree with this opinion.

As we have reported earlier, TSMC to Open Second Japan Chip Factory.