The article discusses Taiwan Semiconductor Manufacturing Company’s (TSMC) latest earnings report, which revealed strong demand for artificial intelligence (AI) chips, particularly from customers like Nvidia. TSMC, the world’s largest contract chipmaker, reported a 76.4% year-over-year increase in net profit for the first quarter of 2023, driven by robust demand for high-performance computing chips used in AI applications. The company’s CEO, C.C. Wei, highlighted the growing importance of AI chips, stating that AI-related revenue accounted for around 20% of TSMC’s total revenue in the first quarter. This surge in demand for AI chips bodes well for companies like Nvidia, a leading producer of graphics processing units (GPUs) widely used in AI systems. Analysts expect Nvidia’s revenue to more than double by 2025, fueled by the AI boom. TSMC’s strong performance and optimistic outlook for AI chip demand underscore the increasing significance of AI technology across various industries and the potential growth opportunities for semiconductor companies catering to this rapidly expanding market.
Source: https://www.businessinsider.com/tsmc-earnings-ai-chip-demand-nvidia-2025-1