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Highlights:
- TSMC shares jumped nearly 5% after surpassing Q3 expectations, boosting confidence in the semiconductor sector.
- Revenue surged 36% year-on-year, driven by strong demand for AI chips, prompting TSMC to raise its full-year forecast.
- ASML's shares recovered slightly, despite earlier losses, after reporting slower-than-expected global chip demand.
Shares in Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor manufacturer, jumped nearly 5% on Friday following better-than-expected third-quarter results. TSMC’s performance provided a significant boost to the broader semiconductor market, especially after ASML Holdings NV’s weaker showing earlier in the week.
TSMC, valued at over $880 billion, reported a 36% year-on-year revenue increase, reaching $23.5 billion for Q3. The company’s robust results were largely driven by high demand for its advanced artificial intelligence (AI) processors, which positioned TSMC as a key player in the AI chip manufacturing space. In response to the strong quarter, TSMC raised its revenue outlook for the full year, signaling sustained optimism in the AI chip market.
Nvidia Corp and Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD), two major players in the AI chip sector, also saw a pre-market lift in U.S. trading on the back of TSMC’s strong performance. Netherlands-based ASML Holdings, which supplies critical machinery for chip production, rose 3.5% after facing a significant decline earlier in the week due to disappointing earnings.
ASML’s results, released earlier this week, had cast a shadow over the semiconductor industry, as the company highlighted slower-than-anticipated recovery in global chip demand. This announcement wiped $50 billion from ASML’s market value within two days. However, TSMC’s solid Q3 earnings offered some relief to the sector, tempering concerns over broader market weaknesses.
