TSMC Revenue Climbs 39.6% Despite Growth Concerns

TSMC Boosts Revenue Despite Growth Slowdown Concerns

TSMC, the world’s leading chip manufacturer, recorded $10.7 billion in revenue for this quarter’s second month, marking a 39.6% increase from last May. Although this is an 8.3% decrease from April’s earnings, analysts had anticipated lower figures, making this outcome favorable.

Signs of Slowdown Amidst Strong Demand

According to Bloomberg, TSMC saw a significant changes in growth from April, which experienced a 48% year-on-year increase. Despite this slowdown in May, the company aims to boost quarterly revenue by 39% and annual revenue by 24-26%. TSMC attributes its robust performance to the persistent high demand for semiconductor components, especially within AI systems.

Nvidia’s Strategic Moves to Counter US-China Tensions

Nvidia, a major client of TSMC, recently addressed its quarterly report, assuring investors of its capacity to sustain revenue growth despite new US export restrictions to China. Nvidia derives up to 12% of its revenue from China, thus it’s crucial to maintain its position in this market. The company plans to offer products featuring Blackwell architecture and GDDR7 memory to Chinese customers.

These strategic adaptations are vital, as Nvidia’s Chinese market share dramatically decreased from 95% to 50% since sanctions were imposed in 2022. By evolving its product offerings, Nvidia hopes to navigate the challenging regulatory landscape and continue its growth trajectory.

“`

This rewrite organizes the news into digestible sections, maintains an engaging tone, and ensures reader accessibility, all while adhering to the specified formatting and content guidelines suitable for Google Discover.