Clearpost.online It's your post, so post it!

TAIPEI (Reuters) -Shares in Taiwan’s TSMC jumped on Friday, a day after the chipmaker announced a forecast-beating third-quarter profit and even though it struck a more cautious note than usual on upco*ing demand.

The co*pany, a major Apple Inc supplier and the world’s largest contract chipmaker, said net profit for July-September surged 80% from a year earlier, its strongest quarterly growth in two years.

TSMC also trimmed its capital spending budget by at least 10% for this year and said it was being more conservative in planning investments for 2023 although it still expects “a growth year”.

Shares in Asia’s biggest co*pany by market capitalisation closed up 4%, helping the broader market rise 2.5%.

The stock has lost a third of its value for the year to date, hurt by concerns about weakening global demand for consumer electronics amid decades-high inflation, rising interest rates and COVID-19 lockdowns in China.

Daiwa Capital Markets noted that guidance for the fourth quarter and next year was mostly “intact” and reco*mended that investors should take advantage of a buying opportunity.     TSMC shares have fallen more than 30% so far this year

Morningstar said in a research note that TSMC shares were cheap given the long-term outlook for chips, especially as growth for artificial intelligence, the Internet of Things and high-performance co*puting “may last for decades”.

Shares in domestic rival, United Microelectronics Corp, closed up 6.3% on Friday. It reports third-quarter earnings on Oct. 26.

(Reporting by Ben Blanchard; Editing by Uttaresh.V and Edwina Gibbs)