Investing.com — Taiwan Semiconductor Manufacturing Co. (NYSE:) — the world’s greatest contract chipmaker– posted a stronger-than-expected third quarter revenue on Thursday, as sustained demand from the substitute intelligence trade boosted its top-line returns.
The chipmaker additionally supplied an upbeat outlook for the present quarter, partly citing improved capability utilization. US-listed shares within the Taiwanese agency jumped by greater than 6% in premarket buying and selling.
TSMC clocked a web revenue of T$325.26 billion ($10.1 billion) within the three months to September 30, it stated in a press launch. The determine was increased than a Reuters estimate of T$300.2 billion.
Third-quarter income climbed to T$759.69 billion, up 39% from final yr. CFO Wendell Huang stated fourth quarter income will likely be between $26.1 billion and $26.9 billion, with a gross margin of 57% and 59%, whereas annual income can be anticipated to develop round 30%.
Gross sales had been bolstered mainly by TSMC’s superior 3-nanometer chips, which accounted for 20% of general income from wafers, the corporate stated.
“We proceed to watch extraordinarily sturdy AI-related demand from our clients,” CEO C.C. Wei stated in a post-earnings webcast.
Thursday’s earnings come simply days after semiconductor tools maker ASML (NASDAQ:) unveiled a weak gross sales outlook for 2025 due partially to sluggish chip demand from sectors outdoors of AI.
TSMC’s earnings mirrored this development, with income from its Digital Shopper Electronics sector, which churns out chips for gadgets corresponding to sensible TVs and cameras, sinking 19% quarter-on-quarter. However this was largely offset by a spike in income from its core Excessive-Efficiency Computing unit. Each TSMC and ASML are thought-about bellwethers for the chip trade.
Tech giants Apple (NASDAQ:) and Nvidia (NASDAQ:) rank amongst TSMC’s greatest purchasers. Nvidia — a maker of a number of the most superior AI chips available in the market — has develop into a specific point of interest for the passion across the nascent know-how.
“[W]ithout [TSMC], there isn’t a Nvidia and the present AI motion may come to a halt,” stated Paul Marino, Chief Income Officer at Themes ETFs.
“TSMC is a significant gauge of how shortly the AI motion and hyper knowledge facilities will be constructed out and the way wholesome provide dynamics are within the area.”
(Ambar Warrick contributed reporting.)
