Taiwan Semiconductor Manufacturing Company (TSMC) has taken the market by storm with its impressive third-quarter earnings report, causing its US-listed shares to surge by 9.6% in premarket trading and setting the stock up for an all-time high. This news comes after TSMC recorded a remarkable 54% increase in profit and raised its full-year revenue outlook, showcasing its strength in the semiconductor industry.
As a key player in the market, TSMC manufactures chips for tech giants like Nvidia, Advanced Micro Devices (AMD), Broadcom, and many others. The positive earnings report from TSMC has had a ripple effect on its clients’ stocks, with Nvidia shares jumping by 3%, AMD rising by 2.7%, and Broadcom increasing by 2.8% in premarket trading.
Let’s take a closer look at the standout results from TSMC’s earnings report:
– Adjusted earnings per share of 12.54 New Taiwan dollars ($0.39) compared to the expected NT$11.55 ($0.36)
– Revenue of 759.7 billion New Taiwan dollars ($23.5 billion) versus the expected NT$751.1 billion ($23.3 billion)
The recent rally in chip stocks, fueled by TSMC’s strong performance, has helped offset earlier losses in the sector due to concerns about potential US trade restrictions and a discouraging report from semiconductor equipment manufacturer ASML.
Investment firms like Needham, Bernstein, and Barclays have reiterated their buy ratings on TSMC stock following the positive earnings report. Wall Street analysts are also bullish on the stock, with 23 out of 24 analysts recommending buying TSMC shares. According to Bloomberg data, analysts predict shares to rise to around $217 each over the next 12 months.
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