Shares in the Taiwan Semiconductor Manufacturing Company shot up nearly 5% on Friday after the world’s largest semiconductor-manufacturing plant overshot expectations in the third quarter.
TSMC, which is valued north of US$880 billion, offered relief to the broader microchip space after ASML Holdings NV’s disappointing results earlier this week.
As the premier manufacturer of cutting-edge artificial intelligence computer chips, TSMC acts as a bellwether for wider industry demand.
Nvidia Corp and Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD), two prominent players in the AI chip space, are up in pre-market US trades on the back of TSMC’s solid showing.
Netherlands-based ASML, meanwhile, is up 3.5%.
TSMC’s revenue rose by 36% year on year in the third quarter, totalling US$23.5 billion, primarily driven by strong demand for artificial intelligence processors. It raised its full-year revenue predictions in response.
TSMC’s bullish third quarter offered a salve to ASML’s disappointing results earlier this week.
ASML, which has a monopoly on the top-end machinery used to make AI chips, warned that a recovery in global chip demand “is more gradual than previously expected”.
Shares tanked as a result, wiping as much as US$50 billion from the stock’s value in just two days.