Chipmaker TSMC's shares jump after quarterly profit beats estimates

TMC's earnings are likely to ease some of those worries for now

TSMC shares jumped 3.7% on Friday outperforming the broader market, after the Taiwanese chipmaker announced forecast-beating second-quarter profit, with analysts buoyant on the firm's outlook despite some downside concern, Qazet.az reports.

It said it was "highly confident" about its long-term prospects, though also signalled cooling demand from consumer electronics customers who it expects to reduce chip stockpiles over the next few quarters into 2023.

The market has been wary of a possible chip glut due to slowing consumer demand and soaring inflation, especially after Micron Technology Inc last month said a chip shortage in some sectors was quickly turning into a glut.

TSMC's shares are still down around 20% so far this year, in line with broader local market, as investors worry Taiwan's export-dependent economy will be hit by inflation and slowing consumer demand in China, the United States and Europe.