Oct. 17, 2024 Taiwan Semiconductor Manufacturing Company (NYSE:TSM) just announced its third quarter (Q3) results today on October 17. As predicted this world's largest contract chipmaker hit a record all time high in its third-quarter profit boosted by demand for its superior chips.

The operating profit for the third quarter rose 50% to NT $289.9 billion (US$900 million) and net profit climbed to NT $325.3 billion (US$10.1 billion). Total sales for the year also rose 36% year-on-year to NT$747.3 billion (US$23.5 billion). The reported earnings for the third quarter of 2024 is $1.95 per share surpassing the estimated earnings of $1.79 per share.

• Revenue: $23.5B (Est. $23.3B) ; UP +36% YoY

• Gross Margin: 57.8% (Est. 55%) ; UP from 54.3% YoY

• Oper. Margin: 47.5% (Est. 44%)

• Net Profit: NT$325.26B ($10.06B); All-time high

• Warning! GuruFocus has detected 6 Warning Sign with TSM.

The artificial intelligence (AI) boom drives demand for chips and benefits TSM as major tech companies rely heavily on TSM's technologies for robust and efficient chips. TSMC's high-end node manufacturing of 3nn and 5nn has made the firm a key provider of chips to top Artificial Intelligence firms.

In response to the report, TSM stock rose by 7% in pre-market trading. The stock price has soared 84.65% year-to-date showing investors' optimism of the company. TSMC's Chairman and CEO, C.C Wei also pointed out that over the coming years the company has increased its investments in AI in meeting the demand.

Continued growth and success are expected from the company thanks to its capability to perform innovative delivery of technology and satisfying the increasing demand for advanced chips.Don't just read the latest news - make informed investment decisions. Visit GuruFocus today and dive deeper into TSM's performance with Charts & Guru Insights

This article first appeared on GuruFocus.