TSMC’s strong performance buoyed optimism around an unprecedented AI spending cycle that drove the likes of Nvidia to new heights. The advent of ChatGPT spurred a frenzied data centre build-out over the past two years, benefiting a host of companies that provide the piping and brains of the AI boom.
Taiwan Semiconductor Manufacturing Co. projected quarterly sales and capital expenditure ahead of analysts’ estimates, fueling hopes that spending on AI hardware should remain resilient in 2025.
The main chipmaker to Apple Inc. and Nvidia Corp. foresees spending US$38 billion ($51.97 billion) to US$42 billion on technology and capacity this year, or up to 19% more than analysts anticipated. It predicted revenue of US$25 billion to US$25.8 billion in the March quarter, as much as 6% above projections. Shares in TSMC rose the most since October, and the projected spending helped fuel a rally among US and European chip equipment companies including Applied Materials Inc. and ASML Holding NV.
