TSMC Raises Full-Year Outlook to 30% Growth on 'Insane' AI Demand; Shares Jump 9%

Oct 17, 2024, 09:52 AM

Taiwan Semiconductor Manufacturing Company (TSMC) reported robust third-quarter earnings, surpassing expectations and raising its revenue outlook, driven by surging demand for AI chips. The world's largest chipmaker posted a 36% year-over-year increase in revenue to $23.5 billion, exceeding estimates of $23.3 billion. Net profit also surged, with an EPS of $1.78, up 41% from the previous year. Gross margins improved to 57.8%, beating projections of 55%. TSMC raised its fourth-quarter revenue guidance to between $26.1 billion and $26.9 billion, ahead of analyst estimates of $24.2 billion, indicating a 13% sequential growth. For the full year 2024, the company now expects revenue growth of close to 30% in US dollar terms, up from its previous forecast of slightly above mid-20% growth. The company attributed its strong performance and optimistic outlook to 'insane' and 'real' demand for AI chips, noting that 'almost every AI innovator is working with TSMC'. The positive results propelled TSMC's stock to rise over 9% in pre-market trading, sending US-listed shares higher. Major U.S. chipmakers, including NVIDIA, Intel, and AMD, also saw their shares rise following TSMC's earnings report.