TSMC posts record quarterly profit on AI demand, but wary about tariffs

Strong AI Demand Fuels Revenue Growth

Taiwan Semiconductor Manufacturing Co. (TSMC) has reported its highest-ever quarterly profit, driven by robust demand for chips used in artificial intelligence applications. The company, which is the world’s largest contract chipmaker, posted a 61% rise in profit for the second quarter of 2025 compared to the same period last year[3]. This rise is attributed to continued strength in orders from leading technology firms that rely on advanced chips for emerging tools like ChatGPT and other AI-powered products.

Upgraded Revenue Forecast for 2025

TSMC's executive team announced an upward revision to its full-year revenue outlook, now expecting about 30% growth in US dollar terms for 2025, up from the previous estimate of "close to mid-20s percent" growth. Second-quarter revenue reached NT$933.79 billion, a 39% year-over-year increase, and earnings per share climbed to NT$15.36, both exceeding analyst expectations[1][2].
  • Revenue for Q2 2025: NT$933.79 billion (39% year-over-year rise)
  • Earnings per share: NT$15.36
  • Projected Q3 2025 revenue: Between $31.8 billion and $33 billion USD

Market Impact and Industry Position

Following the strong financial results and positive outlook, TSMC's stock rose nearly 4% in premarket trading, adding to an 18% gain so far this year[1]. The company’s ongoing partnerships with major industry players such as Apple and Nvidia continue to secure its leadership in advanced chip fabrication.

Looking Ahead

TSMC’s CEO C.C. Wei cited “exceptionally high demand” for AI products as a key growth factor for the company’s performance in 2025[1][3]. As the semiconductor industry remains central to innovation in AI, expectations remain high for continued expansion—despite ongoing vigilance regarding tariffs and supply chain dynamics.

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