Shares of Taiwan Semiconductor Manufacturing Company (TSMC) soared to a record high on Friday, reaching T$1,100 ($34.25) after the chipmaker reported third-quarter earnings that surpassed expectations. The stock’s impressive performance, a 6% increase shortly after the market opened, eclipsed the previous record of T$1,080 set on July 11. This surge bolstered TSMC’s market capitalization to approximately $884 billion, making it the most valuable company listed in Asia.
The positive earnings report was driven by robust demand for artificial intelligence (AI) technologies. During its earnings call on Thursday, TSMC announced a remarkable 54% year-over-year increase in quarterly profit and raised its revenue forecast for the year. The company also projected a “healthy” outlook for the next five years.
Venson Tsai, an analyst at Cathay Futures Consultant in Taipei, noted that TSMC’s stock has potential for further growth. “TSMC’s share price hasn’t fully reflected the rising wave of AI in the long term,” he remarked.
However, the company faces some political challenges. A report from the U.S. media outlet The Information indicated that the U.S. Department of Commerce is investigating whether TSMC has been producing AI or smartphone chips for China’s Huawei, which has experienced restricted access to non-Chinese chips due to U.S. export controls.
In response to the probe, TSMC emphasized its commitment to compliance with all applicable laws and regulations. The company stated, “If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties, including customers and regulatory authorities as necessary.”
As the world’s largest contract chipmaker, TSMC continues to benefit from a growing demand for AI solutions across various industries, serving major clients such as Apple and Nvidia.
Related topics:
Hesai Group Back on U.S. Defense List Amid Controversy Over Military Ties
Crown Castle Revises 2024 Net Income Forecast Amid Sluggish Leasing Activity
Amazon Launches First Color Kindle E-Reader After Years of Development