Why Nvidia, AMD, Micron, Arm And Other Chipmakers Are Ripping Higher Premarket On Thursday

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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