TSMC's Revenue Soars Amidst AI Surge, Despite Market Volatility

TSMC anticipates a 34% revenue increase in Q3, driven by the growing adoption of AI, despite market fluctuations and comments by Donald Trump impacting share prices. The world's largest contract chipmaker reported a net profit of T$247.8 billion for the April-June quarter, exceeding analyst expectations.

TSMC expects its third-quarter revenue to surge by up to 34% from the previous year, following a net profit report that surpassed market expectations.

The world's largest contract chipmaker, a key supplier for Apple and Nvidia, has benefited from increasing AI adoption, which helped offset declining pandemic-related electronics demand. TSMC's April-June net profit rose to T$247.8 billion ($7.60 billion), beating the T$238.8 billion forecast according to LSEG SmartEstimate.

TSMC's second-quarter revenue also increased by 33% year-on-year to $20.8 billion, exceeding previous forecasts. The company projects current quarter revenue between $22.4 billion and $23.2 billion, significantly higher compared to last year's $17.3 billion. Capital expenditure was reported at $6.36 billion in Q2, up from $5.77 billion in Q1.

Despite these strong financial results, TSMC's Taipei-listed shares fell 2.4% on Thursday after U.S. Presidential candidate Donald Trump criticized Taiwan's dominance in the chip industry and suggested the U.S. should be compensated for its defense support. ($1 = 32.6000 Taiwan dollars)

(With inputs from agencies.)