TAIPEI (Reuters) – The Taipei-listed shares of TSMC hit a report excessive on Friday after the world’s largest contract chipmaker posted forecast-beating third-quarter earnings and gave a rosy outlook for sturdy synthetic intelligence (AI) demand.
Shares closed up 4.8% at T$1,085 ($33.77), surpassing the earlier report of T$1,080 on July 11. That offers TSMC a market capitalisation of about $874 billion, the very best of any firm listed in Asia. The benchmark index ended 1.9% greater.
The corporate, nonetheless, appeared to face some political uncertainty after U.S. media outlet the Info mentioned the U.S. Commerce Division was investigating if it had been making AI or smartphone chips for China’s Huawei, whose entry to non-Chinese language chips has been curbed by U.S. export controls.
TSMC, which counts Apple (NASDAQ:) and Nvidia (NASDAQ:) amongst its clients, has benefited from a surge in the direction of AI throughout a spectrum of industries.
TSMC reported a forecast-beating soar of 54% in quarterly revenue on Thursday, raised its income forecast for the yr and mentioned the following 5 years would even be “healthy”.
The inventory may go greater nonetheless, mentioned Venson Tsai, an analyst at Cathay Futures Advisor in Taipei.
“TSMC’s share price hasn’t fully reflected the rising wave of AI long term,” he mentioned.
After the report of the U.S. investigation, TSMC mentioned on Friday it was a law-abiding firm and dedicated to complying with legal guidelines and rules, together with export controls.
“If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance,” it mentioned.
Such motion would come with holding investigations and proactively speaking with events akin to clients and regulatory authorities as required, it added.
The U.S. commerce division declined to remark, as did Taiwan’s economic system ministry, which is charged with ensuring export controls are adopted.
In July 2020, TSMC mentioned it had stopped taking new orders from Huawei and didn’t plan to ship wafers after that September.($1=32.1190 Taiwan {dollars})
