Shares of foundry Taiwan Semiconductor Manufacturing Company Ltd. TSM rose in premarket trading on Thursday, positioning the company on track to cross the $1 trillion market capitalization threshold.
Hsinchu, Taiwan-based TSMC reported a 39% year-over-year and 12.8% sequential increase in revenue to NT$759.69 billion ($23.50 billion), exceeding the company’s guidance of $22.4 billion to $23.2 billion and the consensus estimate. Strong smartphone and AI-related demand for more advanced 3-nanometer and 5-nm processor node technologies fueled the top-line growth.
These high-performance, high-value chips also drove margin expansion from the year-ago and previous quarters. As such, the bottom line jumped 54% to NT$12.54 per share ($1.94), exceeding Street expectations.
The company guided to fourth-quarter revenue of $26.1 billion to $26.9 billion, while the Street was modeling a far more modest $24.86 billion.
In premarket trading, U.S.-listed ADRs of TSMC soared 8.47% to $203.36, according to Benzinga Pro data. The positive sentiment has proved contagious and has perked up the semiconductor space as a whole.
If the positive sentiment toward TSMC carries over into the regular session, the company’s valuation could shoot past $1 trillion. The company is currently the ninth most valued by market capitalization in the world.
See Also: Best Semiconductor Stocks
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