Why Nvidia, Apple Chip Supplier TSMC Stock Is Rallying In Wednesday's Premarket

Shares of foundry Taiwanese Semiconductor Manufacturing Co. Ltd. TSM climbed in premarket trading after the company reported September revenues.

The Hsinchu, Taiwan-based company said its September revenues rose 0.4% month-over-month and jumped 39.6% to NT$ 251.87 billion ($7.82 billion). Revenue for the third month of September was at NT$ 759.69 billion ($23.59 billion), ahead of the NT$ 748 billion consensus, as seen on Bloomberg. For the third quarter, the company guided to revenue of$22.4 billion- $23.2 billion.

The company is scheduled to announce its September quarter full results on Oct. 17.

Given TSMC designs chips made using advanced wafer technology are used for high-performance computing including training and inference for artificial intelligence applications and chatbots, IoT applications, automotives, smartphones and consumer electronics products. The company is a major supplier to technology companies worldwide, including Nvidia Corp. NVDA, Apple, Inc. AAPL and Advanced Micro Devices, Inc. AMD.

In premarket trading, TSMC rose 0.81% to $187.56, according to Benzinga Pro data. Nvidia rose 0.94% to $134.14.

See Also: Best AI Stocks

Photo by Sundry Photography on Shutterstock