KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Taiwan Semiconductor (TSM.US) reported September revenue of NT$330.98 billion, up 31.4% year-on-year and down 1.4% month-on-month, bringing Q3 revenue to NT$989.92 billion, an increase of 30% YoY and above market expectations. The results offer one of the clearest indications yet of sustained, broad-based AI demand flowing through the semiconductor ecosystem.
Stronger-Than-Guided Performance
Management had guided for Q3 revenue between US$31.8 billion and US$33.0 billion (based on NT$29/USD), implying a midpoint of NT$939.6 billion. To hit that midpoint, September sales needed only to reach around NT$281 billion. The actual figure of NT$331 billion comfortably exceeded that threshold, surpassing even the upper end of guidance and signaling demand momentum across advanced logic and packaging nodes.
Broader Ecosystem Strength
The performance mirrors strong results from Taiwan’s AI server manufacturers. Hon Hai (Foxconn), Wistron, and Wiwynn all posted robust September and third-quarter revenue growth. Their synchronized strength suggests that supply bottlenecks in the AI hardware chain are easing, and that the industry is scaling effectively to meet soaring compute requirements.
Sustained Compute Demand Pipeline
Downstream demand remains anchored by aggressive AI infrastructure investments.
OpenAI has locked in multi-year chip supply deals with NVIDIA (NVDA.US) and AMD (AMD.US), alongside an ASIC partnership with Broadcom (AVGO.US).
Collaborations with CoreWeave (CRWV.US), Oracle (ORCL.US), and SoftBank under the Stargate data-center expansion program are also ramping up.
These initiatives ensure a steady pipeline of advanced chip orders, reinforcing TSMC’s role as the primary supplier of cutting-edge AI semiconductors.
Options Market Signals Caution
Despite TSMC’s strong stock performance, derivatives activity points to rising caution.
The Put/Call ratio has increased, reflecting hedging or bearish sentiment.
Implied volatility remains elevated, suggesting traders are pricing in potential sharp moves in either direction.
These signals imply that investors are bracing for volatility even as fundamentals remain strong.
Strategic Importance
TSMC remains the linchpin of the AI revolution—the only foundry capable of producing the most advanced GPUs and ASICs powering global AI infrastructure. With demand from hyperscalers, chip designers, and AI startups all converging on its facilities, TSMC’s financial results continue to serve as the most reliable indicator of the sector’s health.
Bottom Line:
TSMC’s September and Q3 outperformance reaffirms its critical role in the global AI supply chain. The company’s consistent ability to exceed forecasts amid surging compute investment underscores its dominant market position and the durability of AI-driven semiconductor demand.
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