TSMC stock hits new high after profits jump 54%, NVIDIA stocks see massive jump too

Taiwan Semiconductor Manufacturing Co (TSMC) is riding high, as its shares hit a new peak on Friday following an impressive earnings report. The Taipei-listed chipmaker posted a 54 per cent jump in third-quarter profits, well beyond expectations, and gave a positive outlook for the future, thanks to booming demand for artificial intelligence (AI) technologies.

TSMC’s shares surged 6 per cent at the market open, reaching T$1,100 (around $34.25), surpassing its previous record of T$1,080 set in July. This milestone gave TSMC a market value of approximately $884 billion, making it the most valuable company listed in Asia.

Growth backed by AI, but challenges loom
TSMC, which supplies major tech giants like Apple and NVIDIA, has seen strong momentum as AI continues to take centre stage across industries. The company raised its revenue forecast for the year and predicted healthy growth over the next five years, signalling that the AI wave is far from slowing down.

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However, TSMC may have some political turbulence ahead. Reports from US media indicate that the US Department of Commerce is investigating whether TSMC has supplied AI or smartphone chips to Huawei, a Chinese tech firm facing strict export controls.

In response, TSMC emphasised its commitment to complying with all regulations and pledged to take immediate action if any compliance issues arise. Both the US Commerce Department and Taiwan’s Economy Ministry have declined to comment on the matter.

NVIDIA follows suit with stock rally
TSMC’s positive earnings report also boosted investor confidence across the chip industry, driving a rally in US semiconductor stocks. NVIDIA, one of TSMC’s largest customers, saw its shares soar to a new high, reflecting optimism around the growing demand for processors that power AI applications.

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Meanwhile, Intel, a rival that has been expanding its chip manufacturing capabilities, also enjoyed a modest 1 per cent rise in its share price. However, analysts note that Intel’s efforts to catch up with TSMC in advanced chip production will likely take several years to bear fruit.

AI powers optimism despite broader market worries
TSMC’s upbeat forecast offered some reassurance to investors after recent concerns about slowing demand for non-AI semiconductors, particularly following weaker guidance from ASML, a key player in chipmaking equipment. Fortunately, TSMC reported solid demand not only from AI-related businesses but also from smartphones, signalling continued momentum in the sector.

The stellar performance of TSMC and NVIDIA has reignited excitement among investors, showing that the AI revolution remains a powerful force despite the uncertainties facing the broader tech industry.