Taiwan Semiconductor Manufacturing Co.’s revenue slid a less-than-projected 11% after demand from artificial intelligence players helped offset sagging smartphone and laptop chip sales.
Revenue in July-September totaled NT$546.7 billion ($17 billion) according to Bloomberg’s calculations. That marked an 11% decline on the prior year, but beat the average analyst estimate of NT$531.5 billion. Sales in September came in at NT$180.4 billion.
Data centers driving AI are boosting demand for chips by TSMC client Nvidia Corp., as well as that of memory used with those systems. The preliminary sales numbers come as investors look for signs that the AI boom is translating into sales, and may alleviate concerns about a prolonged sector-wide slump.
Investors will be focusing on the Taiwanese firm’s outlook when it reports July-September earnings on Oct. 19. The world’s largest contract chipmaker is seen as a bellwether for the tech sector, amid growing concern for slowing sales growth at tech giants such as Apple Inc.
TSMC’s shares have gained more than 18% since the beginning of the year.
