Taiwan Semiconductor (NYSE: TSM) reported a 29.2% year-over-year increase in revenue to $12.14 billion in the third quarter, beating analysts’ estimates of $11.93 billion.
Despite exceeding expectations, shares of Taiwan Semiconductor slipped 0.43%.
Taiwan Semiconductor, which was the first Taiwanese company to list in the New York Stock Exchange, has increased its stock price by 46% in 2020.
The world’s leading chip foundry reported a 21.6% jump in sales from last year’s third quarter and a 14.7% increase over the previous three months.
Net profit margin reached 38.5% in the quarter, and earnings per share were $0.90. Analyst expected earnings per share to be $0.81. Taiwan Semiconductor earned $0.62 per share in the third quarter of 2019.
Wendell Huang, VP and CFO of TSM, said, “Our third-quarter business benefited from the strong demand for our advanced technologies and specialty technology solutions, driven by 5G smartphones, HPC and IoT-related applications.”
In the fourth quarter, Huang says that growth will be “supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related applications.”
Taiwan Semiconductor has lofty expectations in the fourth quarter.
Its outlook includes revenues between $12.4 billion to $12.7 billion in the fourth quarter, which represents an 18.4% increase in sales.
However, the company expects profit margins to diminish a little during the fourth quarter, mainly due to different economic and political headwinds around the world.