Nvidia Supplier TSMC Reports Q3 Revenue, Earnings Beat Amid Rising Demand For AI Chips

Benzinga · 10/17 05:57

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSMC) announced quarterly results that came in ahead of forecasts, thanks to strong demand for advanced processor node technologies used in artificial intelligence applications. The foundry supplies chips to most global corporations including Nvidia Corp. (NASDAQ:NVDA) and Apple, Inc. (NASDAQ:AAPL).

TSMC’s Key Q3 Metrics: Hsinchu, Taiwan-based TSMC reported consolidated third-quarter revenue of NT$759.69 billion ($23.50 billion), up 39% year-over-year. Sequentially, the top line expanded by 12.8%. In dollar terms, the revenue growth was 36% year-over-year and 12.9% quarter-over-quarter.

Revenue topped the NT$748 billion consensus, as provided by Bloomberg.

The top-line performance also exceeded the company’s guidance of $22.4 billion- $23.2 billion.

Net income and earnings per share climbed a steeper 54.2% each to NT$325.26 billion and NT$12.54 per share, respectively. Analysts, on average, expected a net profit of NT $300.2 billion, according to LSEG estimate available through Reuters.

The company said 3-nm accounted for 20% of the total revenue, while 5-nm and 7-nm technologies accounted for 32% and 17%, respectively. The more advanced technologies together made up 69% of the total wafer revenue, up from 67% in the previous quarter.

See Also: Best Semiconductor Stocks

Margin Profile: Here’s how margins compare to the prior-year periods:

Q3’24 Q2’24 Q3’23
Gross Margin 57.8% 53.2% 54.3%
Operating Margin 47.5% 42.5% 41.7%
Net Profit Margin 42.8% 36.8% 38.6%
Source: Company statement

TSMC Stock: The AI euphoria has driven shares of companies levered to the technology sharply higher and TSMC is no exception. The Taiwanese company’s ADRs listed on the NYSE are up over 82% for the year-to-date period. It ended Wednesday’s session up 0.19% at $187.48, according to Benzinga Pro data.

Photo by Sundry Photography on Shutterstock

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