Taiwan Semiconductor Manufacturing (NYSE: TSM) lowered its full-year outlook for the semiconductor industry on Thursday amid persistent macroeconomic and geopolitical uncertainty. The foundry market leader now expects a "more mild and gradual" recovery this year.

While overall demand will be somewhat mixed, TSMC expects to churn out far more AI accelerators this year than it did in 2023. The company sees revenue from AI accelerators more than doubling in 2024 to reach a low-teens percentage of overall sales. Over the next five years, TSMC expects AI accelerator revenue to grow at a 50% annual rate.

TSMC has had some issues with its 3-nanometer process node. Apple uses the top-tier process for its custom chips, but AI accelerators have been relegated to older 5nm technology. Nvidia's recently announced Blackwell data center GPUs were widely rumored to be using TSMC's 3nm node, but they instead will utilize a modified version of the same process used by their predecessors.

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Source Fool.com