TSMC beats forecasts as quarterly sales, profits soar

(Sharecast News) - Third-quarter profits and sales soared at Taiwan Semiconductor Manufacturing Co, the chip giant confirmed on Thursday, fuelled by the ongoing artificial intelligence boom. Revenues in the three months to 30 September soared 50.9% to NT$1.49trn (£35bn), while net income rocketed 68.7% to NT$763.1m. Consensus had been for revenues closer to NT$1.47trn and income of around NT$746.3bn.

The operating margin was also head of forecasts for 58%, at 58.7%.

Wendell Huang, chief financial officer, said: "Our business in the third quarter was supported by strong demand for our leading-edge process technologies. Moving into the fourth quarter, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology."

For the full year, TSMC is currently forecasting revenues of between US$52.3bn and US$54.3bn, with an operating profit margin of between 56.5% and 58.5%.

TSMC, which supplies Nvidia and Apple, among others, is one of a number of companies worldwide that has seen profits and sales surge on the back of the AI boom. Founded in 1987, it is now the world's leading contract semiconductor manufacturer. The results are the firm's sixth consecutive quarter of record profits.

However, its shares softened 2% in Taipei, and 2% in pre-market trading in New York, amid a wider sell-off of tech stocks and weakness across Asian markets.