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.
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