U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) rose 9.6% in pre-market trading after third-quarter profit beat analysts’ expectations, sending the stock to a record high. TSMC posted a 54% profit increase and raised its full-year earnings outlook.
TSMC makes chips for Nvidia (NVDA) and its rival Advanced Micro Devices (AMD), as well as Broadcom (AVGO) and many other technology companies. Nvidia shares rose 3% premarket on the news, AMD rose 2.7% and Broadcom rose 2.8%.
Here are the results for TSMC:
Adjusted earnings per share of NT$12.54 ($0.39) versus forecast of NT$11.55 ($0.36)
Sales: NT$759.7 billion ($23.5 billion), forecast NT$751.1 billion ($23.3 billion)
A rally in semiconductor stocks earlier this week partially reversed the sector’s decline on concerns about possible further U.S. trade restrictions and a gloomy report from chip manufacturing equipment maker ASML.
Analysts from investment firms including Needham, Bernstein and Barclays reiterated their buy ratings on TSM stock Thursday morning. Of the Wall Street analysts tracked by Bloomberg who cover the company, about 23 recommend the stock as a buy, while only one has a hold rating.
Analysts on average expect the stock to rise to about $217 each over the next 12 months, according to Bloomberg data.
