TSMC stock hits new high after posting forecast-beating earnings

TSMC stock rises: Taipei-listed shares in hit a record high on Friday after the chipmaker posted forecast-beating third-quarter earnings and predicted a rosy outlook on strong artificial intelligence (AI) demand.Shares jumped 6 per cent shortly after opening to reach T$1,100 ($34.25), surpassing the previous record of T$1,080 hit on July 11. That gave TSMC a market capitalisation of around $884 billion, the most of any company listed in Asia.The company, however, appeared to face some political uncertainty after US media outlet The Information said the US Department of Commerce is probing whether TSMC has been making AI or smartphone chips for China's Huawei HWT.UL, whose access to non-Chinese chips has been severely curtailed due to US export controls.As the world's largest contract chipmaker, TSMC, whose customers include Apple AAPL.O and Nvidia NVDA.O, has benefited from a surge towards AI across a spectrum of industries.On its earnings call on Thursday, Taiwan Semiconductor Manufacturing Co (TSMC) TSM.N reported a forecast-beating 54 per cent jump in quarterly profit, raised its revenue forecast for the year and said the next five years would also be "healthy" for the firm.Venson Tsai, an analyst at Cathay Futures Consultant in Taipei, said the stock could go higher still."TSMC's share price hasn't fully reflected the rising wave of AI long term," he said.Following the media report about the US probe, TSMC said in a statement on Friday that it was a law abiding company and committed to complying with laws and regulations, including export controls."If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities as necessary," it said.The US Commerce Department declined to comment.

Advertisement

TSMC stock hits new high after posting forecast-beating earnings

As the world's largest contract chipmaker, TSMC, whose customers include Apple & Nvidia, has benefited from a surge towards AI across a spectrum of industries.

Advertisement