TSMC Jumps Premarket After Chipmaker Posts Another Record Quarter

• TSMC shares gained 2% in Friday’s premarket session.
• Results signal that the Taiwanese giant is benefiting from sustained demand for advanced semiconductors, despite concerns from supply-chain disruption from the Middle East conflict.
• Stocktwits sentiment for TSMC improves to ‘neutral.’

Taiwan Semiconductor Manufacturing Co.’s shares jumped 2% in early premarket trading on Friday, after the chip-maker's quarterly results.

Revenue in the March quarter surged 35% to 1.13 trillion new Taiwan dollars ($35.6 billion), exceeding analyst forecasts of 1.12 trillion new Taiwan dollars from LSEG/Reuters.

TSMC produces chips for Nvidia, Apple, and nearly all major U.S. semiconductor firms, with data center chips becoming a major component of its overall business in recent years.

Results signal that the Taiwanese giant is benefiting from sustained demand for advanced semiconductors, even as concerns persist about supply chain disruptions from the Middle East conflict and weakness in the smartphones and PC markets.

CNBC reported SemiAnalysis Sravan Kundojjala as saying that TSMC hikes prices for its most advanced manufacturing, which is a “big factor” behind the first-quarter sales beat.

TMSC will report first-quarter earnings on April 16 along with an updated outlook for the current quarter and full year.

On Stocktwits, retail sentiment for TSMC shifted to ‘neutral’ from ‘bearish.’ “TSM Great monthly numbers. Story very much still intact,” said a user. 

TMSC shares have largely traded within a range most of last month before shooting earlier this week after the U.S. and Iran announced a temporary ceasefire. The stock is up by over 20% year to date.

Investors will now be watching ASML's quarterly results next week. According to analysts' estimates from Koyfin, the Dutch chip-making machine maker’s revenue would increase 12% to $10.1 billion, while adjusted profit would increase 11% to $7.77 per share.

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