TSMC produces semiconductors for the likes of Apple (AAPL) and Nvidia (NVDA), so these latest figures will bolster investor hopes of a strong 2025 for the AI trend.
Russ Mould, investment director at AJ Bell, said: "Just as Nvidia’s quarterly figures are a barometer of AI activity, TSMC’s sales and earnings are also crucial markers for the tech revolution. Therefore, the latest blockbuster quarter from TSMC could give the reassurance about the AI trend that investors want and need."
The chipmaker is set to publish its full set of fourth quarter results on Thursday 16 January.
The stock is trading at its lowest point in nearly 30 years, though shares surged briefly in December, on the back of reports that the company was in talks to be bought out by a private equity firm. Other reports said that such a deal could trigger a fresh auction of UK chain Boots, which is part of the larger Walgreens Boots Alliance business.
JPMorgan analyst Lisa Gill wrote in a note to investors on Monday that there is unlikely to be an update on Friday and that she is instead more focused on the cost-savings strategy the company has implemented since CEO Tim Wentworth took over in 2023.
Shares closed Thursday's session down nearly 5% but were up nearly 1% in pre-market trading on Friday morning.
Shares in India's Tata Consultancy Services (TCS) rose by nearly 6% on Friday, after the IT firm predicted a rise in technology spending by companies.
Bloomberg reported that TCS CEO K Krithivasan told a news conference in Mumbai that the firm expects this year to be better than last as customers are more confident about IT spending and believed that clients would be more focused on higher-margin software services going forward.
TCS posted revenue of $7.54bn in the third quarter, which was up 3.6% year-on-year and net income of $1.46bn, an increase of 3.4% on the same period in 2023.
In the results release, Krithivasan said: "Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead."
Shares in French video game publisher Ubisoft slid 6% on Friday morning, after the company said it was taking "decisive steps" to reshape the group.
This included the appointment of advisors to review various strategic options, which comes following reports in December that shareholders were in talks over possible buyout terms.
Ubisoft said it was continuing to drive "significant" cost reductions and expected to deliver a reduction of over €200m (£167.5m) in its fixed cost base by the 2025/26 fiscal year.
"This additional time will allow the team to better incorporate the player feedback gathered over the past three months and help create the best conditions for launch by continuing to engage closely with the increasingly positive Assassin’s Creed community," Ubisoft said, adding that the game was now scheduled to be released on 20 March.
Despite delivering its "biggest ever Christmas", Sainsbury's shares fell more than 3% on Friday morning, after the supermarket's CEO Simon Roberts reportedly warned budget tax changes would drive the price of fresh food higher.
Sainsbury's announced that it would raise wages for hourly-paid workers by 5% this year, in its third quarter trading statement on Friday.
However, the Guardian reported that Roberts once again warned of the inflationary impact of changes to employer national insurance (NI) contributions, announced in the autumn budget.
“It is coming at us fast in a way that was unexpected and will bring inflation as a result," said Roberts, adding that the supermarket would have to be "very thoughtful about where we hire" due to higher costs.
In the third quarter, Sainsbury's said sales had grown 3.7% year-on-year. The company said it expected to deliver retail underlying operating profit in line with consensus, at the midpoint of its £1.01bn to £1.06bn range for the fiscal year.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "Sainsbury’s third-quarter results showed just why it’s grown to become the UK’s second-largest supermarket. Customers value being able to do their food shop all in one place, especially at Christmas."
"And thanks to Sainsbury’s ongoing drive to improve its quality, value and service, it’s managed to claw more market share from the competition and deliver its seventh consecutive quarter of volumes growing ahead of the sector average," he added.
