Last month Taiwan-based TSMC posted revenue of around $5.8 billion. Although sequential revenue fell 15.8% compared to January, it marked an increase of 11.3% year-on-year. The two-month revenue for TSMC in the current year increased by 9.4% annually to $12.6 billion.
Reasons for Sequential Revenue Drop
The sequential decrease in TSMC’s revenue for February may be due to both seasonal and market reasons. The Lunar New Year was celebrated in China, and recent reports have indicated a drop in iPhone sales in the country by 24% this year. Notably, Apple formed 25% of TSMC’s revenue results last year. However, TSMC does not disclose who the second-largest client is, but mentions that they account for up to 11% of the revenue. NVIDIA, as well as AMD, with its vast array of products made by TSMC, could potentially occupy this position.
A.I Boom Boosts Annual Revenue
It is believed that the boom in artificial intelligence systems, with NVIDIA as the main beneficiary, contributes to TSMC’s annual revenue growth. While the company’s revenue fell 4.5% last year, it may increase by 20% this year, if both management and independent analyst expectations are met. The statistics from the first two months of the year suggest that this scenario is achievable.
