TSMC: AI demand is crazy, outstanding performance leads to a 10% surge in stock price

TSMC's impressive performance boosts chip stocks, leading to a new high in the Dow Jones Industrial Average. Strong retail sales in the U.S., while the ECB cuts interest rates as expected by one basis point. Bitcoin and Ethereum, on the other hand, remain steady near the flatline.

TSMC's Stunning Financial Presentation Leads to Nearly 10% Surge in TSM Stock Price

Taiwan Semiconductor Manufacturing Company (TSMC) held its financial presentation yesterday, revealing a net profit of NT$325.26 billion (approximately $10.1 billion USD) for the third quarter ending on September 30, far exceeding analysts' expectations of NT$300.2 billion.

TSMC Chairman Mark Liu pointed out that the demand for AI is "crazy" and assured that the company's growth in the next five years will also be very healthy!

TSMC's ADR stock code: TSM surged by 9.79% on Thursday to reach $205.84 per share, with a market capitalization surpassing $1 trillion at one point, leading the semiconductor stocks to rise collectively. Nvidia hit a new intraday high, but the closing price narrowed to $136.93 per share.

Strong U.S. Retail Sales

Data shows that U.S. retail sales in September increased slightly higher than expected, boosting confidence in the continued strength of the U.S. economy. Retail sales in September rose by 0.4%, higher than the market's expectation of 0.3% and the previous month's growth of 0.1%.

In addition, the number of initial jobless claims in the U.S., as reported by the Department of Labor, unexpectedly decreased by 19,000 to 241,000, lower than the expected 259,000. However, analysts anticipate fluctuations in the number of claims in the near term due to the impact of recent hurricanes in the U.S.

ECB Expected to Cut Interest Rates by One Notch

The European Central Bank (ECB) is expected to cut interest rates by 25 basis points as anticipated, marking the third rate cut this year. The Eurozone's inflation rate for September has dropped to 1.8%, below the central bank's 2% target.

ECB President Christine Lagarde stated that the downside risks to the ECB's inflation outlook "may be" greater than the upside risks. Despite various more positive indicators, including easing pressures on labor costs, the ECB did not commit to a specific rate path in advance but will rely on data and continuously adjust in the future.