Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, reported a significant revenue increase in the second quarter, driven by the booming demand for chips powering artificial intelligence (AI) applications. This growth far surpassed analyst expectations, marking TSMC’s highest quarterly revenue ever at T$673.51 billion ($20.67 billion). This represents a remarkable 32% year-on-year increase.
The driving force behind TSMC’s exceptional performance is the surging demand for AI chips from major tech companies like Apple and Nvidia. These companies are heavily investing in AI development, fueling the need for more advanced and powerful chips, which TSMC is uniquely positioned to produce.
This strong growth in AI-related chip demand has offset any potential slowdown from the waning effects of pandemic-driven demand, demonstrating the strength of the underlying market trend. As a result, TSMC’s stock price has reached an all-time high, reflecting investor confidence in the company’s continued success.
While TSMC did not provide detailed guidance in its revenue statement, analysts anticipate a 30% year-on-year rise in second-quarter net profit. The company is scheduled to release its full earnings report on July 18, offering further insights into its Q2 performance and future plans. This report is eagerly awaited by investors and analysts as it will reveal more details about TSMC’s outlook and its position in the rapidly evolving AI chip market.