What Can Drive TSMC's Revenue Rebound? Strong Demand for AI Chips from Nvidia, Broadcom, AMD

Taiwan Semiconductor Manufacturing Company Ltd TSM expects a significant revenue rebound in the year's second half.

The launch of new Apple Inc AAPL iPhones and strong demand for AI chips from Nvidia Corp NVDA, Broadcom Inc AVGO, and Advanced Micro Devices, Inc 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 GOOG GOOGL Google, and Amazon.Com, Inc 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 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.