Abstract:
TSMC’s third-quarter profit exceeded expectations, maintaining rapid growth at a time when concerns about the long-term prospects of artificial intelligence (AI) infrastructure construction are growing. The key global chipmaker said net profit rose 69% to NT$763.1 billion (US$23.6 billion), beating analysts' average forecast. The company previously reported a 51% increase in quarterly sales to $47 billion, which also exceeded expectations.
As the exclusive producer of the most advanced semiconductors for Nvidia and Apple, TSMC's strong performance contrasts with the market's increasingly pessimistic sentiment towards AI stocks. Downstream from TSMC, concerns about investment returns and long-term financing are impacting companies such as cloud computing service provider and NVIDIA customer CoreWeave. CoreWeave's stock and bond prices both plummeted on Wednesday.
TSMC’s revenue growth has accelerated in the past two quarters and it has stepped up efforts to expand production capacity. The company said capital expenditures this year will be as high as $64 billion, a record high.
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