Chipmaker TSMC reported third-quarter profit that beat expectations, sending its stock price to a record high. |Image source: Reuters
Taiwan Semiconductor Manufacturing Co.’s Taipei-listed shares hit a record high on Friday after the chipmaker reported third-quarter profit that beat estimates and forecast a positive outlook for strong artificial intelligence (AI) demand.
Shortly after the opening, the stock price rose 6% to NT$1,100 (US$34.25), surpassing the previous record of NT$1,080 set on July 11. The one with the highest market capitalization.
However, the company appears to be facing some political uncertainty after the U.S. media The Information reported that the U.S. Commerce Department is investigating whether TSMC has been making artificial intelligence or smartphone chips for China’s Huawei because of Huawei’s access to non-Chinese chips. severely restricted.
As the world’s largest contract chipmaker, TSMC, whose customers include Apple and Nvidia, has benefited from the wave of artificial intelligence in various industries.
During an earnings call on Thursday, Taiwan Semiconductor Manufacturing Company (TSMC) reported quarterly profit growth of 54%, beating expectations, raised its revenue forecast for this year, and said the company will also be “healthy” over the next five years.
Vincent Tsai, an analyst at Cathay Futures Consulting in Taipei, said the stock could go higher.
“TSMC’s share price is not fully pricing in the long-term rise in artificial intelligence,” he said.
After media briefings on the U.S. investigation, TSMC said in a statement on Friday that it was a law-abiding company and committed to complying with laws and regulations, including export controls.
“If we have any reason to believe there is a potential issue, we will take immediate action to ensure compliance, including conducting an investigation and proactively communicating with relevant parties, including customers and regulators, if necessary,” the company said.
The U.S. Commerce Department declined to comment.
Published – October 18, 2024 09:05 AM (IST)