Why Nvidia, AMD, Micron, Arm And Other Chipmakers Are Ripping Higher Premarket On Thursday

Benzinga · 10/17 09:39

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSMC) is seen singularly lifting the semiconductor space in premarket trading on Thursday.

The Catalyst: Hsinchu, Taiwan-based TSMC reported third-quarter revenues and earnings per share that exceeded consensus estimates, citing strong smartphone and AI-related demand for its more advanced 3nm and 5nm technologies.

The relatively higher share of more advanced processor node technologies gave margins a big boost, with gross, operating, and net margins all exceeding prior-year periods.

The foundry supplies chips to most global corporations including Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).

The company’s earnings and earnings per share both jumped 54% year-over-year, growing faster than the top line, which climbed 39%.

More importantly, TSMC guided fourth-quarter revenue to $26.1 billion to $26.9 billion, well above the $24.86 billion consensus estimate.

TSMC’s stellar quarterly results should quell the anxiety of investors, who were increasingly becoming skittish about a potential AI bubble burst.

See Also: Best Semiconductor Stocks

Stock Moves: Nvidia, whose advanced chips, power most of AI applications and processes, jumped 2.56% to $139.19, according to Benzinga Pro data.

The Jensen Huang-led company is on the cusp of topping Apple as the world’s most-valued company, with merely a differential of $195 billion in market cap between the companies. A $8 gain by Nvidia could help accomplish the feat, provided Apple remains flat or retreats.

Among the other movers are:

  • Advanced Micro Devices Inc. (NASDAQ:AMD) rose 2.93% to $160.70.
  • Micron Technology Inc. (NASDAQ:MU) added 2.17% to $111.61.
  • Arm Holdings Plc. (NASDAQ:ARM) jumped 3.90% to $158.45.
  • Broadcom Inc. (NASDAQ:AVGO) moved up 2.23% to $180.76.
  • Qualcomm Inc. (NASDAQ:QCOM) rose 1.62% to $174.25.
  • Marvell Technology Inc. (NASDAQ:MRVL) gained 2.23% to $83.50.
  • iShares Semiconductor ETF (NASDAQ:SOXX) climbed 2.33% to $232.65.

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