TSMC Shares Rise on Record Q2 Earnings and AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) (TW:2330) shares rose Friday after the chipmaker reported record second-quarter earnings, driven by booming demand for AI chips and advanced semiconductors.

The world’s largest contract chipmaker posted a net profit of T$398.3 billion ($13.53 billion) for the April–June quarter, marking a 60.7% year-on-year surge and surpassing analyst expectations. Revenue climbed 38.6% to T$933.79 billion, fueled by strong sales of cutting-edge 3nm, 5nm, and 7nm process technologies.

Boosted by the results, TSMC’s Taipei-listed shares rose 1.8% to T$1,150 on Friday, just shy of their record high of T$1,160. U.S.-listed TSMC shares also gained, closing 3.4% higher earlier in the week.

CEO C.C. Wei credited the growth to escalating demand in high-performance computing and artificial intelligence applications. He emphasized that the AI-driven shift is significantly expanding semiconductor needs globally.

Reflecting strong momentum, TSMC raised its full-year revenue growth forecast to approximately 30% in U.S. dollar terms, up from the previous mid-20% range. The company also issued bullish guidance for the third quarter, projecting revenue between $31.8 billion and $33 billion.

However, Wei cautioned that potential U.S. tariffs and currency fluctuations could weigh on profit margins and impact demand for non-AI chips later in the year.

The outlook triggered mixed responses in the broader semiconductor sector. Japan’s Advantest Corp. (TYO:6857) dropped over 4%, while Tokyo Electron (TYO:8035) slipped 0.6%. South Korea’s Samsung Electronics Co. (KS:005930) dipped 0.2%.

Despite macroeconomic uncertainties, TSMC’s strong earnings highlight the growing role of AI chips in the semiconductor industry and position the company for continued growth amid the AI boom.