A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.
Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter profit, hitting a record high and beating estimates, as demand for artificial intelligence chips stayed strong.
The world's largest contract chip manufacturer forecast third-quarter revenue between $31.8 billion and $33.0 billion — a 38% year-over-year increase and 8% higher from the prior quarter at the midpoint.
TSMC CEO C.C. Wei said in the earnings call that the company expects its full-year 2025 revenue to rise by around 30% in U.S. dollar terms, supported by growth in artificial intelligence and demand for its most advanced technologies.
Here are the company's results versus LSEG SmartEstimates:
Revenue: 933.80 billion new Taiwan dollars ($31.7 billion), vs. NT$931.24 billion expected
Net income: NT$398.27 billion, vs. NT$377.86 billion
TSMC's net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, also beating estimates.
The company's shares were up over 4% at 4:30 a.m. ET on trading platform Robinhood.
TSMC's high-performance computing division, which encompasses artificial intelligence and 5G applications, drove second quarter sales, contributing 60% of revenue. That share of HPC revenue was up from 52% in the same period last year.
TSMC has benefited from the artificial-intelligence megatrend as it manufactures advanced AI processors for clients including Nvidia and Apple.
"The primary driver of growth for TSMC has been the robust demand for AI related chips, particularly for the leading edge nodes below 7nm," said Brady Wang, associate director at Counterpoint Research.
In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency. TSMC said advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC's total wafer revenue in the quarter.