US-listed shares of Taiwan Semiconductor Manufacturing Company (TSM) surged 9.6% in premarket trading, putting the stock in position for an all-time high after its third-quarter earnings beat analyst estimates. TSMC recorded a 54% jump in profit and raised its full-year outlook.
TSMC manufactures chips for Nvidia (NVDA) and its rival Advanced Micro Devices (AMD) as well as Broadcom (AVGO) and many other tech firms. Nvidia shares jumped 3%, AMD rose 2.7%, and Broadcom jumped 2.8% premarket on the news.
Here’s a look at TSMC’s results:
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Adjusted earnings per share of 12.54 New Taiwan dollars ($0.39) versus NT$11.55 ($0.36) expected
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Revenue of 759.7 billion New Taiwan dollars ($23.5 billion) versus NT$751.1 billion ($23.3 billion) expected
The chip stocks’ rally partially reverses the sector’s losses earlier this week, driven by fears over potential further US trade restrictions and a gloomy report from semiconductor equipment manufacturer ASML.
Analysts at Needham, Bernstein, Barclays, and other investment firms reiterated their buy ratings on TSM stock Thursday morning. Of the Wall Street analysts tracked by Bloomberg who cover the company, some 23 recommend buying the stock, while only one analyst has a Hold rating.
On average, analysts see shares rising to about $217 over the next 12 months, per Bloomberg data.