TSMC Expected to Post Record Q2 Profit on AI Chip Demand

Taiwan Semiconductor Manufacturing Co (TSMC), the world's leading producer of advanced AI chips and a major supplier to companies like Apple and Nvidia, is set to report a record second-quarter profit with estimates around $12.9 billion, marking a 52-53% increase year-over-year. The company's revenue is expected to have risen by approximately 39%, driven primarily by strong AI chip demand, though challenges such as U.S. tariffs, currency fluctuations with the Taiwan dollar appreciating about 12%, and weaker smartphone market demand may temper outlooks. Despite these headwinds, TSMC's dominance in AI chip manufacturing and substantial investments, including a $100 billion U.S. expansion announced with President Trump, position it for continued growth with analysts projecting around 20% revenue growth by 2025. Investors remain focused on TSMC's advanced semiconductor node demand and visibility of AI orders over the next two to three years, while the company is holding an investors' conference to provide further insights. Qualcomm also continues to bolster its position in the semiconductor and AI space through 5G expansion and new patents, signaling broader industry momentum in AI-related technologies. Overall, TSMC's performance highlights the critical role of AI-driven demand in shaping the semiconductor sector amid geopolitical and economic uncertainties.