TSMC has a high degree of advantage in advanced logic chip manufacturing. (Bloomberg)
[Financial Channel/Comprehensive Report] The third quarter corporate financial reporting season is about to begin, and AI and energy have become the two major focuses of the market! Foreign media Zacks analysis reported that the third quarter profit of S&P 500 constituent stocks is expected to increase by 24.6% year-on-year, with the technology industry soaring 43.3%, the energy industry soaring 114.3%, and semiconductor profits also expected to increase 85.5%. Driven by the boom in AI investment and the high level of oil prices, the market named three stocks whose financial reports may bring surprises and are worth buying in advance.
Reports pointed out that the third quarter earnings season is about to begin, and market profit growth remains strong. According to the latest financial forecasts, third-quarter profits of S&P 500 constituent stocks are expected to increase by 24.6% year-on-year, while revenue will grow by 11.6%. It is expected to maintain double-digit profit growth for the eighth consecutive quarter.
Please read on...
Among them, the technology and energy industries performed the most prominently, with third-quarter profit estimates increasing by 43.3% and 114.3% respectively. The profits of the semiconductor industry are even expected to increase by 85.5%, showing that investment in AI infrastructure is gradually being translated into actual chip demand.
According to Zacks estimates, even if Huida, Micron and Alphabet are excluded, the technology industry's third-quarter profits can still grow by 20.5%, indicating that AI-driven demand is no longer limited to a few large technology companies.
In terms of energy, affected by the situation in the Persian Gulf that has pushed up oil prices, the energy industry's third-quarter profit forecast has been significantly revised upward. The current price of Brent crude oil remains above US$100 per barrel. Logistics restrictions, increased tanker costs and limited refining capacity continue to support the energy market.
Driven by the two major industries, Lam Research, Taiwan Semiconductor Manufacturing Company (TSMC) and Marathon Petroleum (MPC-US) have become the focus of market attention before financial reports.
Colin R&D's revenue in the fourth quarter of fiscal year 2026 was US$6.72 billion, an annual increase of 30%, and adjusted EPS was US$1.82, an annual increase of 35%. Zacks estimates that its revenue in the first quarter of fiscal year 2027 will reach US$8.12 billion, with EPS of US$2.17, representing annual increases of 52.4% and 72.2% respectively. The company is expected to announce its financial results on October 21.
TSMC is directly benefiting from the demand for AI chips. It estimates that its revenue in the third quarter will be US$44.6 billion to US$45.8 billion, with a gross profit margin of 65% to 67%. Zacks estimates third-quarter revenue of $45.62 billion and EPS of $4.45, representing annual increases of 37.8% and 52.4% respectively. TSMC is expected to announce its financial results on October 15.
Marathon Oil is the stock with the most amazing profit growth among the three companies. The company's second-quarter adjusted EBITDA for its refining and marketing division increased significantly from $1.89 billion in the same period last year to $6.66 billion. Zacks estimates third-quarter EPS to reach $23.15, an annual growth rate of 669.1%. The company is expected to announce financial results on November 3.
As the earnings season officially begins, whether AI demand can continue to be converted into semiconductor profits, and whether high oil prices can continue the profit explosion of energy companies, will become the key for the market to observe the subsequent performance of these three stocks.
Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel
