TSMC Shares Jump on Strong Earnings Report

In a remarkable turn of events, Taiwan Semiconductor Manufacturing Company (TSMC) saw its US-based stocks climb by 4% in premarket trading this Thursday. This surge comes on the heels of the semiconductor behemoth reporting first-quarter earnings that not only beat analyst forecasts but also highlighted a staggering 60.3% year-over-year increase in net profit, reaching $11.1 billion.

AI Chip Demand Drives Growth

The company's impressive financial performance is largely attributed to the insatiable demand for artificial intelligence chips. Despite the competitive landscape, TSMC has managed to maintain its mid-20% growth forecast for the year, a target it set back in January. This optimism persists even after the announcement of an additional $100 billion investment in US operations last month—a strategic move that has garnered praise from former President Donald Trump, especially in the context of his proposed tariffs on Taiwanese imports.

Market Reaction

By 4:24 am ET, TSMC's shares were up by 4.70%, trading at $158.80 each. This uptick reflects the market's bullish outlook on the company's future, fueled by its robust earnings report and strategic investments in expanding its global footprint.