Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) expects a significant revenue rebound in the year's second half.
The launch of new Apple Inc (NASDAQ: AAPL) iPhones and strong demand for AI chips from Nvidia Corp (NASDAQ: NVDA), Broadcom Inc (NASDAQ: AVGO), and Advanced Micro Devices, Inc (NASDAQ: AMD), with robust wafer-start momentum is likely to trigger the rebound, Digitimes reports.
Companies like TSMC had a challenging start during 2023 due to supply chain disruptions, weak demand further intensified by U.S. sanctions on Chinese industries, and the Russian-Ukraine conflict.
However, launching OpenAI and companies like Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)
Google, and Amazon.Com, Inc (NASDAQ: AMZN) entering the AI race helped the sector redeem its losses.
Reportedly, Nvidia had placed additional orders at TSMC for chips. The chipmaker expects Q2 revenue of $11 billion thanks to the AI boom.
Nvidia stock has surged close to 200% YTD.
The AI hype also drove orders for Broadcom's AI-related customized chips (ASIC). Google and Meta Platforms Inc (NASDAQ: META) have placed orders with Broadcom.
Nvidia is working on advanced versions of its current H100 GPUs after hitting the trillion-dollar club with its lineup of the A100 & H100 GPUs.
Price Action: TSM shares closed lower by 0.69% at $102.44 premarket on the last check Wednesday.