Taiwan Semiconductor Manufacturing Co (NYSE:TSM) supplier chief expressed conviction over artificial intelligence’s potential to trigger the semiconductor industry’s growth trajectory.
Scientech Corp CEO Hsu Ming-Chi expects sequential quarterly sales growth in the second half of 2024, backed by the demand surge for AI applications it makes for Taiwan Semiconductor to produce AI chips for Nvidia Corp (NASDAQ:NVDA), Bloomberg Television cites an interview.
In a way, Ming-Chi snubbed the current chip sector selloff led by Nvidia, which lost over 17% in the last five days. Advanced Micro Devices, Inc (NASDAQ:AMD) and Taiwan Semiconductor lost 6% during the period.
Nvidia’s second-quarter print failed to impress the Street, triggering selloffs.
Ming-Chi hailed it as the beginning of the AI frenzy, citing a two—to three-fold annual growth in its equipment sales to Taiwan Semiconductor. He expects AI semiconductors to beat the global chip market growth of 8% in the last two decades.
Taiwan Semiconductor Co-COO Y.J. Mii made similar claims at the Semicon Taiwan industry forum in Taipei this Wednesday, projecting a 50% compound growth rate for AI accelerator. Samsung Electronics’ memory chip business President, Lee Jung-Bae, backed Mii’s projection at the event.
Recent reports claimed Taiwan Semiconductor and its partners are fast-tracking silicon photonics for AI, targeting a $500 million market by 2028.
Apple Inc (NASDAQ:AAPL) supplier Hon Hai Precision Industry Co, also known as Foxconn reported a 33% month-over-month topline growth in August 2024, bearing testimony to the continued AI frenzy.
The results reflect a recovery from a smartphone slump, backed by demand for AI servers containing Nvidia’s AI accelerators, Bloomberg reports.
Taiwan Semiconductor stock has risen over 70% in the last 12 months. Investors can gain exposure to the stock through the SPDR S&P Emerging Asia Pacific ETF (NYSE:GMF) and the ProShares Nanotechnology ETF (NYSE:TINY).
Price Action: TSM stock is trading higher by 1.63% at $163.50 at the last check on Thursday.
Photo by Jack Hong via Shutterstock
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This article Taiwan Semi’s Supplier Dismisses Selloff, Projects Strong AI Growth Surge originally appeared on Benzinga.com
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