Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
Charles Schwab Corp.'s shares surged after reporting stronger-than-expected third-quarter earnings, signaling that the firm is moving past a challenging 2023. Adjusted earnings per share for the quarter reached 77 cents, surpassing analysts' estimates, while adjusted net income totaled $1.5 billion, a slight increase from the previous year.
One of the key highlights was Schwab's success in reducing its costly bank supplemental funding by $8.9 billion, thanks to a $9.2 billion rise in client transactional cash sweep balances. This marks a significant step in Schwab's recovery after last year’s interest rate hikes prompted customers to move their deposits in search of better returns, forcing the firm to rely on more expensive funding sources.
Schwab's stock jumped 7.45% following the news, signaling investor confidence in the firm's turnaround efforts.
Outgoing CEO Walt Bettinger referred to the results as an "inflection point" for Schwab, although he noted that time will tell if the company has fully overcome the challenges it faced in 2023. Schwab experienced a tough year as rising interest rates led to deposit withdrawals and significant paper losses on its bond investments.
The firm is now focused on shrinking its bank's balance sheet and paying down debts. Bettinger is set to retire at the end of the year, with Rick Wurster named as the incoming CEO. Schwab also brought in Mike Verdeschi from Citigroup as its new CFO, replacing Peter Crawford.
Schwab's net asset gathering also showed strong momentum, with $95 billion gathered in the third quarter, pushing year-to-date net new assets to $252 billion, a 10% increase compared to last year.
The company expects full-year 2024 revenue growth of 2% to 3%, though it noted that its net interest margin might not reach the previously projected 3% target due to the current lower rate environment.
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