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The intelligence may be artificial, but the money sure ain’t.
Chipmaker Taiwan Semiconductor Manufacturing revealed that its third-quarter net profit increased 54.2% YoY to $10.1 billion, and revenue increased 39% to $23.6 billion. This was a “record quarterly profit” for the company, the Wall Street Journal reported.
CEO CC Wei said in a Q3 earnings call on Thursday that the company expects revenue from AI servers and processors “to more than triple this year and account for mid-teens percentage of our total revenue in 2024.” Wei also noted that a “key customer” of TSMC’s said that demand for AI-related products is “insane.”
“The demand is real,” Wei said. “And I believe it’s just the beginning of this demand.”
TSMC has itself been using AI and machine learning in its fabrication and R&D operations, which has led to greater “productivity, efficiency, speed, [and] qualities,” he said.
Companies far and wide are practically throwing money at AI tools, and the makers of the tech that enables AI (read: chip manufacturers) are reaping the rewards. For example, fellow chipmaker Nvidia saw its revenue growth surge “to triple digits for the fourth quarter in a row” in Q2, as CFO Brew previously reported.
It’s clear to Wei that AI is more than hype.
“I believe a lot of companies right now are using AI for their own improving productivity, efficiency, everything,” he said on the earnings call. “So I think it’s real.”