Taiwan Semiconductor Manufacturing Co. (TSM) posted a 34% year-over-year jump in November sales, showing that demand for its artificial intelligence (AI)-focused chips remains strong.
The company, which supplies tech heavyweights such as Apple (AAPL) and Nvidia (NVDA), reported November sales of 276.06 billion New Taiwan dollars ($8.48 billion). Still, the sales numbers were down 12% from October's figures.
However, revenue between January and November has jumped 32% year-over-year to NT$2.62 trillion.
November Sales Jump Comes After CEO Called AI Demand 'Real'
The numbers come after TSMC in October projected a buoyant outlook, with Chief Executive Officer (CEO) C.C. Wei calling the demand for AI "real" in the third-quarter earnings call, according to a transcript provided by AlphaSense.
Tech companies have dramatically increased their spending on AI infrastructure this year as they've raced to satisfy surging demand for the emerging technology as well as cloud computing, but investors have been worried that the huge investments may not pay off.
U.S.-listed shares of TSMC, the world's largest contract chip manufacturer, are falling about 1% in premarket trading but have almost doubled this year.