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TSMC (TSMC) Stock: Surging AI Demand Powers Record Q225 Profit Beat
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), better known as TSMC, has just announced a record-breaking second-quarter profit for fiscal year 2025, with a staggering surge in demand driven by the rapid growth of artificial intelligence (AI) technology. In response to this impressive performance, TSMC stock rose 3.89% to $246.80.
The company’s exceptional Q2 results, which exceeded expectations, can be attributed to the relentless AI boom that is transforming various industries globally. The AI-driven chip manufacturer reported a net income of NT$398.27 billion, a massive 61% year-over-year growth and an impressive 38.6% revenue increase to NT$933.79 billion.
As the global demand for sophisticated AI-powered chips intensifies, TSMC’s dominance in the market has been solidified. The company is now expected to maintain this momentum as it forecasts Q3 revenue between $31.8 billion and $33.0 billion, representing an 8% growth from the previous quarter and a substantial 38% increase year-over-year.
Despite lingering concerns over macroeconomic risks such as potential U.S. tariffs under Donald Trump’s trade policy proposals, TSMC CEO C.C. Wei emphasized the company’s confidence in its long-term prospects, fueled by the sustained strength of AI chip demand. CFO Wendell Huang further reiterated this optimism, highlighting robust demand for high-performance computing and 5G applications, which contributed to a significant share of total revenue.
TSMC’s AI-driven semiconductor business has enabled it to outperform industry peers, as its advanced chips account for an impressive 74% of wafer revenue. In contrast, the company’s Q3 outlook remains robust, with expectations set at $31.8 billion and $33.0 billion in revenue.
In addition to these exceptional results, TSMC has also demonstrated exceptional long-term performance, boasting a year-to-date return of 23.64%, a one-year return of 34.09%, and an astonishing five-year return of 302.99%.
Source: coincentral.com
