Why Nvidia, Apple Chip Supplier TSMC Stock Is Rallying In Wednesday's Premarket

Shares of foundry Taiwanese Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) climbed in premarket trading after the company reported September revenues.

The Hsinchu, Taiwan-based company said its September revenues rose 0.4% month-over-month and jumped 39.6% to NT$ 251.87 billion ($7.82 billion). Revenue for the third month of September was at NT$ 759.69 billion ($23.59 billion), ahead of the NT$ 748 billion consensus, as seen on Bloomberg. For the third quarter, the company guided to revenue of$22.4 billion- $23.2 billion.

The company is scheduled to announce its September quarter full results on Oct. 17.

Given TSMC designs chips made using advanced wafer technology are used for high-performance computing including training and inference for artificial intelligence applications and chatbots, IoT applications, automotives, smartphones and consumer electronics products. The company is a major supplier to technology companies worldwide, including Nvidia Corp. (NASDAQ:NVDA), Apple, Inc. (NASDAQ:AAPL) and Advanced Micro Devices, Inc. (NASDAQ:AMD).

In premarket trading, TSMC rose 0.81% to $187.56, according to Benzinga Pro data. Nvidia rose 0.94% to $134.14.

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