TSMC (TSM, Financial) experienced a significant surge in its stock price, climbing over 10% and surpassing $200, reaching a new all-time high. This jump follows the company's impressive third-quarter financial results that exceeded market expectations, reflecting strong demand in AI technology.
In the third quarter, TSMC reported a net profit of 325.3 billion New Taiwan Dollars, marking a 54% increase year-over-year and a 31.2% rise from the previous quarter. This figure surpassed the market's forecast of 299.3 billion New Taiwan Dollars. Additionally, the company's consolidated operating revenue reached 759.7 billion New Taiwan Dollars, up 39% year-over-year and 12.8% quarter-over-quarter, exceeding the estimated 751 billion New Taiwan Dollars. Earnings per share were 12.54 New Taiwan Dollars, a 54.2% year-over-year increase.
Looking forward, TSMC anticipates its fourth-quarter sales to range between $26.1 billion and $26.9 billion, above the market expectation of $24.94 billion. The anticipated fourth-quarter gross margin is projected at 57% to 59%, outperforming the market's forecast of 54.7%. For 2024, TSMC expects its annual sales, calculated in USD, to grow nearly 30%, a significant increase from the previously projected growth rate of around 20%.
In terms of capital expenditure, TSMC predicts it will slightly exceed $30 billion in 2024 and possibly rise higher in 2025. The company's chairman, Mark Liu, emphasized the ongoing robust demand for AI technology, stating that the demand is just beginning and anticipating continued support from advanced processing technologies in the fourth quarter.
