Taiwan Semiconductor Manufacturing Company Ltd. TSMC is seen singularly lifting the semiconductor space in premarket trading on Thursday.
The Catalyst: Hsinchu, Taiwan-based TSMC reported third-quarter revenues and earnings per share that exceeded consensus estimates, citing strong smartphone and AI-related demand for its more advanced 3nm and 5nm technologies.
The relatively higher share of more advanced processor node technologies gave margins a big boost, with gross, operating, and net margins all exceeding prior-year periods.
The foundry supplies chips to most global corporations including Nvidia Corp. NVDA and Apple Inc. AAPL.
The company’s earnings and earnings per share both jumped 54% year-over-year, growing faster than the top line, which climbed 39%.
More importantly, TSMC guided fourth-quarter revenue to $26.1 billion to $26.9 billion, well above the $24.86 billion consensus estimate.
TSMC’s stellar quarterly results should quell the anxiety of investors, who were increasingly becoming skittish about a potential AI bubble burst.
See Also: Best Semiconductor Stocks
Stock Moves: Nvidia, whose advanced chips, power most of AI applications and processes, jumped 2.56% to $139.19, according to Benzinga Pro data.
The Jensen Huang-led company is on the cusp of topping Apple as the world’s most-valued company, with merely a differential of $195 billion in market cap between the companies. A $8 gain by Nvidia could help accomplish the feat, provided Apple remains flat or retreats.
Among the other movers are:
- Advanced Micro Devices Inc. AMD rose 2.93% to $160.70.
- Micron Technology Inc. MU added 2.17% to $111.61.
- Arm Holdings Plc. ARM jumped 3.90% to $158.45.
- Broadcom Inc. AVGO moved up 2.23% to $180.76.
- Qualcomm Inc. QCOM rose 1.62% to $174.25.
- Marvell Technology Inc. MRVL gained 2.23% to $83.50.
- iShares Semiconductor ETF SOXX climbed 2.33% to $232.65.
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