TSMC Surging Demand for AI Drives Impressive Financial Performance with 10 Stock Price Surge
TSMC’s impressive performance drives chip stocks up, while the Dow Jones Industrial Average hits a new high. Strong U.S. retail sales and an expected rate cut by the ECB. Bitcoin and Ethereum remain stable.
TSMC’s earnings report was astounding, with a net profit of NT$325.26 billion (approximately $10.1 billion) for the third quarter ending on September 30th. This far exceeded analysts’ estimates of NT$300.2 billion.
TSMC Chairman Mark Liu stated that the demand for AI is “crazy” and assured that the company’s growth for the next five years will also be very healthy.
TSMC ADR (stock code: TSM) surged 9.79% on Thursday, reaching $205.84 per share, with a market value briefly surpassing $1 trillion, driving up chip stocks. Nvidia hit a new high during trading, but its gains narrowed at the end of the day, closing at $136.93 per share.
Data shows that U.S. retail sales in September increased slightly higher than expected, boosting confidence in the continued strength of the U.S. economy. Retail sales rose by 0.4% in September, higher than the market’s expected growth of 0.3% and the previous month’s growth of 0.1%.
In addition, the number of initial jobless claims unexpectedly decreased by 19,000 to 241,000, lower than the expected 259,000. However, analysts predict that the number of claims may fluctuate in the near term due to the impact of hurricanes in the United States.
As expected, the European Central Bank (ECB) cut interest rates by 25 basis points, marking its third rate cut this year. The inflation rate in the eurozone for September dropped to 1.8%, below the central bank’s target of 2%.
ECB President Christine Lagarde stated that the downside risks to the inflation outlook “could be” greater than the upside risks. Despite positive indicators, including easing labor cost pressures, the ECB did not commit to a specific rate path and will rely on data for continuous adjustments.
AI, TSMC, ECB, and the Dow Jones Index.
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