Why Nvidia, AMD, Micron, Arm And Other Chipmakers Are Ripping Higher Premarket On Thursday

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSMC) is seen singularly lifting the semiconductor space in premarket trading on Thursday.

The Catalyst: Hsinchu, Taiwan-based TSMC reported third-quarter revenues and earnings per share that exceeded consensus estimates, citing strong smartphone and AI-related demand for its more advanced 3nm and 5nm technologies.

The relatively higher share of more advanced processor node technologies gave margins a big boost, with gross, operating, and net margins all exceeding prior-year periods.

The foundry supplies chips to most global corporations including Nvidia Corp. (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).

The company’s earnings and earnings per share both jumped 54% year-over-year, growing faster than the top line, which climbed 39%.

More importantly, TSMC guided fourth-quarter revenue to $26.1 billion to $26.9 billion, well above the $24.86 billion consensus estimate.

TSMC’s stellar quarterly results should quell the anxiety of investors, who were increasingly becoming skittish about a potential AI bubble burst.

See Also: Best Semiconductor Stocks

Stock Moves: Nvidia, whose advanced chips, power most of AI applications and processes, jumped 2.56% to $139.19, according to Benzinga Pro data.

The Jensen Huang-led company is on the cusp of topping Apple as the world’s most-valued company, with merely a differential of $195 billion in market cap between the companies. A $8 gain by Nvidia could help accomplish the feat, provided Apple remains flat or retreats.

Among the other movers are: