TSMC (TSM.US) rose over 10% as its Q3 results and Q4 guidance beat market expectations.
TSM.US opened sharply higher by over 10% on Thursday, with its share price hitting a record high of US$200. As of the time of writing, it rose 10.59% to US$207.33. On the news front, TSMC disclosed its third-quarter financial report in the afternoon of October 17, with its performance far exceeding market expectations, showing that AI demand remains strong. Specifically, the Company's net profit in the third quarter reached T$325.3bn, up 54% YoY and up 31.2% QoQ from the second quarter, exceeding the market's expectation of T$299.3bn; its consolidated revenue in the third quarter reached T$759.7bn, up 39% YoY and up 12.8% QoQ from the second quarter, exceeding the estimated T$751bn. The EPS was T$12.54, up 54.2% YoY.
Regarding the guidance, TSMC expects its fourth-quarter sales to be US$26.1bn-US$26.9bn, exceeding the market's expectation of US$24.94bn; it expects its fourth-quarter gross margin to be 57%-59%, while the market expects it to be 54.7%; TSMC expects its full-year sales in 2024 to grow nearly 30% in US dollars, a significant increase from its previous expectation of a maximum growth rate of around 20%. TSMC said it expects its capital expenditure in 2024 to be slightly above US$30bn, and its capital expenditure in 2025 is likely to be higher than that in 2024.
Today, TSMC Chairman Hsieh Pei-yu emphasized publicly: "Artificial intelligence is real," saying that the demand for artificial intelligence has just begun, and expects its business in the fourth quarter to continue to be supported by strong demand for advanced process technologies.