Taiwan Semiconductor Manufacturing Company (NYSE:TSM) saw its shares gain sharply Thursday on its newest earnings. The tech giant reported a third-quarter profit of 211 billion New Taiwan dollars ($6.69 billion U.S.) on Thursday as weak demand for consumer electronics persists.
Even though it was the largest profit decline since the first quarter of 2019, the world’s largest contract chipmaker bested analysts’ expectations.
Revenue proved 546.73 billion New Taiwan dollars ($17.28 billion U.S.), vs. NT$540.39 billion expected. Net income was shown to be NT$211 billion, vs. NT$191.43 billion expected.
TSMC reported revenue slipped 10.83% from a year ago to NT$546.73 billion, while net income fell 24.87% from a year ago to NT$211 billion. That compares with TSMC’s guidance for third-quarter revenue between $16.7 billion and $17.5 billion.
“Our business was supported by the strong ramp of our industry-leading 3-nanometer technology and higher demand for 5-nanometer technologies, partially offset by customers’ ongoing inventory adjustment,” said TSMC in its earnings report.
The chip giant said that revenue increased 13.7% in the third quarter as compared to the second quarter.
In the second quarter, the Taiwanese firm reported a decline in quarterly profit for the first time in four years due to a post-pandemic plunge in the demand for consumer electronics like smartphones and laptops. But analysts have said chip inventories at smartphone and PC makers are running down and they expect restocking demand to come back.
TSM shares galloped $5.02, or 5.6%, to $94.62.