TSMC Stock Jumps on AI-Fueled Earnings Surge [Video]

U.S.-listed Taiwan Semiconductor Manufacturing Co. (TSM) shares jumped 9% Thursday morning after the chipmaker posted robust quarterly earnings and projected a buoyant outlook on the back of the artificial intelligence (AI) boom.

The company, which supplies tech heavyweights such as Apple (AAPL) and Nvidia (NVDA), reported a 54% year-over-year rise in third-quarter net income of 325.26 billion New Taiwan dollars ($10.12 billion), up from NT$211 billion. The profit figure by the world’s largest contract chip manufacturer beat the NT$300.78 billion consensus estimate of analysts polled by Visible Alpha. 

TSMC also reported a 39% jump in revenue to NT$759.69 billion ($23.64 billion) for the quarter and a 57.8% gross margin, above analysts’ estimates and the guidance it gave for both in the second quarter.

“Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” TSMC Chief Financial Officer (CFO)Wendell Huang said. “Moving into …