Catenaa, Thursday, July 10, 2025- Taiwan Semiconductor Manufacturing Company(TSMC) reported on Thursday second-quarter revenue of $31.9 billion, beating market forecasts, as demand for the company’s products leaps on surging interest in AI applications.
The world’s largest contract chipmaker, which sells to Nvidia and Apple, climbed to $31.9 billion for the three months, based on its reported monthly revenue, rising Q2 revenue by 39% from a year ago.
Investors have piled back into AI-linked companies, shaking off a funk that settled in after China’s DeepSeek cast doubt on whether the likes of Meta Platforms and Google needed to spend that much money on data centers.
This week, Nvidia became the first company in history to hit a $4 trillion valuation, underscoring investors’ renewed enthusiasm for companies like TSMC key to building the infrastructure for AI.
TSMC stock was down by 0.6% on Thursday Morning, the stock is up by 15% so far in the year.
The latest result of TSMC topped an LSEG SmartEstimate of $31.7 billion drawn from 21 analysts, and was also better than the guidance of $28.4 billion to $29.2 billion issued by TSMC in April.
TSMC Chief Executive Officer C.C. Wei reassured shareholders in June that AI chip demand still outstripped supply, and reaffirmed an outlook for 2025 sales to grow in the mid-20% range in US dollar terms.
His company has pledged to spend another $100 billion ramping up manufacturing in Arizona, in addition to an expansion in Japan, Germany and back home.
Bloomberg Intelligence says that TSMC will likely hit the high end of its $29.2 billion 2Q sales guidance thanks to AI-driven demand from key chip designers such as Nvidia and rising outsourcing orders from Intel.
This strong momentum is on track to overpower softness in the mobile and consumer segments, keeping the company’s 25% annual US dollar sales-growth target within reach.
