Shortly before 8 a.m. ET markets are looking up across the board on Thursday.
- Nasdaq-100 Futures: Up 162 (+.80%)
- S&P 500 Futures: Up 23 (.40%)
- Dow Jones Futures: Up 55 (.13%)
The big news for the day that is driving the Nasdaq Composite to outsized gains is Taiwan Semiconductor (NYSE: TSM) releasing earnings that point to a continuing boom in AI demand.
Let’s look at the market’s biggest stories today.
Taiwan Semiconductor Crushes Earnings
Taiwan Semiconductor has roughly a 90% market share in the advanced chips used in AI, so it’s a widely followed bellwether in the space. The company reported earnings and beat estimates on almost every major line item.
Third-quarter sales came in at $23.5 billion with operating margins at 47.5% versus a guide that popped out at 44.5%. That led to earnings of $10.06 billion, which handily topped analyst estimates of $9.33 billion.
Commentary on the company’s earnings call was also very bullish. Chairman C.C. Wei had this to say about AI demand:
“Demand is real, and I think it is just the beginning of this demand….demand is insane and I think it will continue for many years.” – C.C. Wei
With Taiwan Semiconductor having the broadest view into future purchasing plans of customers ranging from NVIDIA (Nasdaq: NVDA), to larger hyperscalers like Microsoft (Nasdaq: MSFT), to Apple (Nasdaq: AAPL), this commentary is eyebrow-raising.
The earnings were good enough that NVIDIA is trading up 3.09% in premarket trading. Look for other AI-related stocks like Broadcom (Nasdaq: AVGO) and Marvell (Nasdaq: MRVL) to also be up sharply at market open.
Earnings to Watch Today
There aren’t as many major earnings releases today as we saw on Tuesday and Wednesday when financial services companies generally beat expectations. However, both M&T Bank and Travelers are reporting before market open.
After market close today a couple of widely followed earnings will be Intuitive Surgical and Netflix. In addition, before the market opens on Friday Procter & Gamble, Schlumberger, and American Express will report.
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