Taiwan Semiconductor Manufacturing Company Reports Record-Breaking Quarterly Profit, Surpasses Market Expectations with AI Chip Demand Driven Growth

Taiwan-based Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) has recently announced a record-breaking quarterly profit for its fiscal 2025 second quarter, fueled by the unprecedented demand in artificial intelligence (AI) chip manufacturing.

According to the company’s latest earnings report, net income surged a staggering 61% year-over-year to NT$398.27 billion, far surpassing market expectations. Revenue jumped an impressive 38.6% year-over-year to NT$933.79 billion, primarily driven by strong demand for AI and high-performance computing (HPC) chips.

TSMC’s CEO, C.C. Wei, emphasized that the company’s dominance in the global semiconductor market is largely attributed to its cutting-edge processors designed specifically for key clients such as Nvidia and Apple. The firm’s advanced chip production accounted for 74% of wafer revenue, indicating a significant shift towards more complex and sophisticated designs.

Despite ongoing concerns regarding macroeconomic risks, including potential U.S. tariffs under Donald Trump’s trade policy proposals and Taiwan dollar appreciation, the company remains optimistic about its long-term prospects. As TSMC continues to dominate the AI chip market, analysts like Brady Wang and Sravan Kundojjala highlight the sustainability of demand in future quarters.

TSMC has a remarkable track record of delivering exceptional returns to shareholders. The stock has generated impressive 5-year returns of 302.99%, significantly outperforming the Taiwan Exchange Capitalization Weighted Index.

Source: coincentral.com