TSMC Hits Record Profit, Expands US Operations

Shares of Nvidia and other semiconductor companies surged after Taiwan Semiconductor Manufacturing Co. (TSMC) reported a record-breaking quarterly profit, driven by strong demand for AI chips. TSMC's robust financial results, with a 54% increase in net profit and a 36% rise in revenue, have bolstered investor confidence, pushing its market capitalization above $1 trillion. The earnings have also reassured the market about the ongoing AI boom, despite recent concerns over geopolitical tensions and potential US export restrictions on AI chips. TSMC's growth, fueled by its advanced 3nm and 5nm technology, highlights its critical role in the semiconductor industry, catering to giants like Apple and Nvidia. Meanwhile, the broader chip sector remains cautious following disappointing forecasts from ASML, a key supplier to TSMC, which had previously triggered a sell-off in chip stocks. TSMC continues to expand its global footprint with new fabrication plants in the US, aiming to reduce geopolitical risks.