TSMC Insane AI Demand Leads to Outstanding Performance with 10 Stock Surge
Taiwan Semiconductor Manufacturing Company (TSMC) delivered impressive performance, driving the semiconductor stocks to rise and the Dow Jones Industrial Average to reach a new high. Retail sales in the United States remained strong, and the European Central Bank (ECB) cut interest rates as expected. Bitcoin and Ethereum, on the other hand, remained stable near their current levels.
During yesterday’s earnings conference, TSMC reported a net profit of NT $325.26 billion (approximately $10.1 billion) for the third quarter ending on September 30, far exceeding analysts’ estimate of NT $300.2 billion. TSMC Chairman Mark Liu stated that the demand for AI is “crazy” and guaranteed that TSMC’s growth in the next five years will also be very healthy.
TSMC’s ADR (stock code: TSM) surged 9.79% on Thursday, reaching $205.84 per share, with a market value exceeding $1 trillion at one point, leading other chip stocks to rise as well. Nvidia reached a new intraday high but narrowed its gains in the final trading session, closing at $136.93 per share.
Data shows that retail sales in the United States 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 expectation 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 anticipate potential fluctuations in the number of claims in the near term due to the impact of recent hurricanes in the United States.
As expected, the European Central Bank (ECB) cut interest rates by 25 basis points, marking the third rate cut this year. The inflation rate in the Eurozone for September has 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 “may be” higher than the upside risks. Despite various positive indicators, including easing labor cost pressures, the ECB did not commit to a specific rate path and will rely on data and make continuous adjustments in the future.
AI, TSMC, ECB, Dow Jones Index
