American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

TSMC Q3 earnings beat forecast with AI chip demand driving growth

by admin October 17, 2024
October 17, 2024
TSMC Q3 earnings beat forecast with AI chip demand driving growth

Taiwan Semiconductor Manufacturing Co. (TSMC), a key supplier to Nvidia and Apple, posted a 54% increase in Q3 net profit, surpassing expectations as surging demand for artificial intelligence (AI) chips offset weakness in the mobile industry.

The chip giant reported net profit for the September quarter of NT$325.3 billion ($10.1 billion), exceeding analysts’ average estimate of NT$299.3 billion.

The boost in earnings followed a 39% rise in revenue during the same period.

AI chips offset mobile market slump

TSMC’s performance reflects the growing importance of AI infrastructure.

As companies like Microsoft and Amazon ramp up spending on AI, the demand for advanced chips has surged, helping TSMC weather sluggishness in traditional markets like mobile and automotive sectors.

The increased demand has also bolstered TSMC’s partnerships with Nvidia and Apple, whose AI-related products and services have driven strong chip orders.

Despite concerns about slowing fabrication capacity growth, TSMC’s 2- and 3-nanometer chip technologies have attracted significant interest from companies including Nvidia, AMD, and Qualcomm.

This strong pipeline of orders has allowed TSMC to maintain a positive revenue outlook.

Stock performance and market reaction

TSMC’s shares have surged more than 70% this year, outperforming many of Asia’s major tech companies.

The growth mirrors investor confidence in the AI theme, with US retail investors actively trading TSMC’s American depositary receipts (ADRs). As of early trading, TSMC’s ADRs rose 4.5% on Robinhood’s platform.

Meanwhile, shares of Japanese chip equipment makers like Lasertec Corp. pared early losses after TSMC’s earnings announcement.

However, investors remain cautious following ASML Holding NV’s recent report, which revealed weaker-than-expected bookings due to slower recovery in the mobile and automotive sectors.

TSMC has eyes on international expansion

TSMC’s strategy of international expansion also supports its positive outlook.

The company is pursuing new plant construction in Japan, Arizona, and Germany, with plans to expand further into Europe, focusing on the growing AI chip market.

While AI spending continues to be a bright spot for TSMC, some investors have expressed concerns about its sustainability.

Analysts are questioning whether tech giants like Meta and Alphabet will maintain their high levels of investment in AI chips without a groundbreaking application to justify the spending.

Despite these concerns, TSMC remains focused on strengthening its production capabilities and capitalizing on AI-driven opportunities.

The company’s leadership in advanced semiconductor technologies and packaging solutions positions it well to meet the needs of future AI applications.

TSMC’s better-than-expected quarterly performance underscores the company’s ability to navigate shifting market dynamics by leveraging AI-driven demand.

With international expansion underway and cutting-edge technology leading the way, TSMC appears well-positioned for continued growth, even as the broader semiconductor market faces uncertainties.

The post TSMC Q3 earnings beat forecast with AI chip demand driving growth appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
NuScale stock forecast: promising, but too many red flags
next post
Will Hyundai’s record IPO in India overcome tepid demand and deliver a strong debut?

Related Posts

Long CMCSA: Comcast Corp. Finds Support After Sharp...

January 4, 2025

Samsung’s Q4 operating profit grew 130% in Q4:...

January 31, 2025

Boeing taps aerospace veteran Kelly Ortberg to replace...

August 1, 2024

McDonald’s might never expand CosMc’s. But the spinoff...

May 31, 2024

Adobe Systems shares plunge 7% as sales outlook...

June 14, 2025

Asian markets open: Nikkei drops 1.33%; Sensex pre-open...

June 13, 2025

GSK shares surge around 6% as drugmaker raises...

February 5, 2025

US stocks crash at open: Dow Jones fell...

June 14, 2025

Asian markets open: positive start for Nikkei; Sensex...

June 16, 2025

AI to generate $23 trillion annually: could it...

December 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved