Nvidia Supplier TSMC Reports Third-Quarter Revenue and Earnings Surpass as Demand for AI Chips Surges – Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Company Ltd. TSMC announced quarterly results that beat forecasts thanks to strong demand for advanced processor node technologies for artificial intelligence applications. The foundry supplies chips to most global corporations, including Nvidia Corp. NVDA And Apple, Inc. AAPL.

TSMC's key Q3 metrics: Hsinchu, Taiwan-based TSMC reported third-quarter consolidated revenue of NT$759.69 billion (US$23.50 billion), up 39% year over year. Revenue increased 12.8% sequentially. In dollar terms, sales growth was 36% year-over-year and 12.9% quarter-over-quarter.

Revenue beat the consensus of NT$748 billion, as reported by Bloomberg.

Sales performance also exceeded the company's forecast of $22.4 billion to $23.2 billion.

Net income and earnings per share rose 54.2% each to NT$325.26 billion and NT$12.54 per share, respectively. Analysts on average expected net income of NT$300.2 billion, according to the LSEG estimate available through Reuters.

The company said 3nm technologies accounted for 20% of total revenue, while 5nm and 7nm technologies accounted for 32% and 17%, respectively. The more advanced technologies combined accounted for 69% of total wafer sales, up from 67% in the previous quarter.

See also: Best semiconductor stocks

Margin profile: This is how the margins compare with the previous year's periods:

TSMC stock: The AI ​​euphoria has driven up the stocks of companies that benefit from the technology, and TSMC is no exception. The Taiwanese company's NYSE-listed ADRs are up over 82% year-to-date. According to Benzinga Pro, Wednesday's session ended up 0.19% at $187.48.

Photo by Sundry Photography on Shutterstock

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