On Thursday, TSMC revealed forecast-beating Q3 results amid soaring demand for artificial intelligence (AI) chips.
The chipmaker’s stock closed the session by increasing 0.19% to $187.48 apiece. It jumped by 6.42% to $199.50 in pre-market trading.
Furthermore, the Taiwan-based company’s earnings per share rose to $1.94, surpassing analysts’ expectations of $1.79 and the previous $1.48 data.
Moreover, TSMC’s third-quarter revenue stood at $23.50 billion, better than the $23.30 billion consensus and last quarter’s $20.82 billion report.
According to sources, the firm, whose customers include Apple and Nvidia, has been favored by the AI boom across a spectrum of industries.
In addition, the company revealed a net profit of $10.11 billion for the current quarter ended last September 30, compared with the estimates of $9.33 billion.
Meanwhile, TSMC’s capital expenditure for Q3 was $6.40 billion, up from $6.36 billion in the previous quarter.
The company will also update its forecast for the current quarter, full year, and capital expenditure as it races to boost output.
Furthermore, the AI boom has bolstered TSMC’s stock, with Taipei-listed shares climbing 75.00% this year, better than the 28.00% increase for the broader market. This also gives the firm a market value of about $840.00 billion.
AI Revolution of TSMC Stirring the Market
TSMC is leading a gen-AI revolution, producing the world’s most advanced microchips required to power products manufactured in Silicon Valley.
However, it struggles with geopolitical disputes between the US and China over technology import limitations, trade, and Taiwan.
Furthermore, the US and some European countries have restricted shipments of high-tech chip technology to Beijing due to concerns about military use.
On the other hand, the firm’s new plants overseas include three US factories, while Japan opened this year.
In addition, C. C. Wei, TSMC CEO, noted that the company’s first factory in Arizona was projected to begin mass production next year.
