TSMC & Others to Witness Significant Economic Rebound, Credits to NVIDIA & AI Hype

wccftech.com:

With the current economic indicators, it seems like the second half of 2023 will be significantly progressive for the semiconductor industry thanks to AI propelling TSMC and NVIDIA to newer heights, as reported by DigiTimes.

Companies like TSMC had a rough time at the start of the year due to supply chain disruptions and diminishing demand. To top up, sanctions on Chinese industries and the Russian-Ukraine conflict led to significant losses in the sector. However, with the release of OpenAI and companies like Google and Amazon entering the AI race, things started to turn positive, with an unexpected influx of demand in the semiconductor industry.

The AI hype has resulted in a surge of a shocking 12.000 percent in NVIDIA's stock pricing. ChatGPT and other content generation tools heavily rely on AI processing power, and this is where NVIDIA comes in with its latest lineup of the A100 & H100 GPUs. In previous coverage, it was reported that NVIDIA had placed additional orders at TSMC for chips that utilize the CoWoS packaging technology in the current lineup of NVIDIA's AI GPUs. The extent of the demand is such that NVIDIA cannot fulfill the placed orders, and several orders have been delayed as much as December.

According to the current situation, NVIDIA predicts that the revenue for Q2 2023 is going to exceed $11 billion, which is a surge of almost 50% from the previous quarter. This AI hype has elevated NVIDIA's net worth to the trillion-dollar club; by the looks of it, it isn't stopping there.

Apart from NVIDIA and TSMC, companies like Broadcom have also attained their share of the AI hype. DigiTimes reports that the orders for AI-related customized chips (ASIC) have significantly increased. Broadcom’s single-quarter