TSMC crushed it, and AI is so back after a grueling two whole days in the wilderness
After reporting a 54% profit growth, US-listed shares of the chip-manufacturing company rose more than 12%.
After rising skepticism over AI — which lasted for two days — shares of AI-related companies rose again, following a blockbuster earnings report from TSMC on Thursday.
The Taiwan-based company manufactures chips designed by other semiconductor companies so they can be used to power AI-related products. During the quarter ended in September, it saw a 54% year-over-year rise in its net income to $10.1 billion. Revenue rose 39%.
In a press release, CFO Wendell Huang said the company was expected to “be supported by strong demand” during the next quarter. The company also forecasted that the revenue from several AI processors would more than triple in 2024, accounting for about 15% of its total revenue this year.
The VanEck Semiconductor ETF was up more than 2.5% on Thursday morning, recouping about half of its 5% fall during the two days before. The ETF was dragged down by Dutch equipment supplier ASML, whose Q3 order bookings were below analyst expectations. That led to a sell-off in chip stocks as investors questioned the long-term sustainability of demand for AI.
But now, TSMC seems to have brought back some of that optimism. The company’s US-listed stock was up more than 12% on Thursday morning. Nvidia was up 2%. Broadcom, Dell, and Micron were among the best-performing S&P 500 stocks during intraday trading so far.
