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TSMC Q3 Profit Surges 54% Amid AI Demand, Exceeding Expectations
Taiwan Semiconductor Manufacturing Company (TSMC) has reported a significant surge in profits, driven by strong demand for AI chips, leading to a substantial increase in its stock price.
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, has reported a remarkable 54% increase in its third-quarter profits, driven by soaring demand for its artificial intelligence (AI) chips. This surge in earnings has led to a significant rise in TSMC's stock price, which jumped 9% in U.S. trading following the announcement. The company's revenue for the quarter reached $23.5 billion, marking a 36% increase from the previous year, and net income soared to $10.1 billion, surpassing Wall Street's expectations.
TSMC's strong performance is attributed to the growing demand for its advanced 3nm and 5nm technology nodes, which are crucial for AI applications. Major clients such as Apple and Nvidia have contributed to this demand, with AI chip revenues expected to more than triple in 2024. The company forecasts fourth-quarter revenues between $26.1 billion and $26.9 billion, reflecting a continued upward trend.
The company's strategic expansion plans include significant investments in new manufacturing facilities in Arizona, USA, and Japan, aimed at mitigating geopolitical risks and diversifying its production capabilities. Despite these expansions, TSMC remains committed to maintaining its primary manufacturing base in Taiwan.
TSMC's robust financial performance and strategic initiatives underscore its pivotal role in the global semiconductor industry, particularly as AI technology continues to drive market demand. The company's leadership remains optimistic about sustaining this growth trajectory, projecting a healthy outlook for the coming years.
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