TSMC Stock Soars After Q2 Profit Jumps 60% on AI Chip Surge

TSMC Doubles Down on AI, Hikes FY25 Growth Outlook After Big Q2

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Jul 17, 2025
Summary
  • TSMC’s Q2 profit jumped 60% and revenue rose 44% as AI and HPC chips drove demand
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July 17 - Shares of Taiwan Semiconductor Manufacturing (TSM, Financial) climbed about 4% in pre‑market trading Wednesday, driven by stronger‑than‑expected second‑quarter results.

TSM posted net profit of NT$398.27 billion or $2.47 per ADR, up 61% from $1.48 a year earlier, while revenue rose 38.6% to $31.7 billion, topping its own guidance of $29.2 billion.

The foundry credited robust demand for artificial intelligence and high‑performance computing chips. Advanced process technologies, including 3‑nanometer, 5 nm and 7 nm nodes, accounted for 74% of wafer revenue in the quarter. From a product mix standpoint, high‑performance computing made up 60% of sales and smartphones contributed 27%.

Regionally, North America remained the largest market at 75% of sales, with China and Asia Pacific at 9% each, Japan at 4% and Europe, the Middle East and Africa at 3%.

Looking ahead, TSM forecast third‑quarter revenue between $31.8 billion and $33 billion, with gross margins of 55.5% to 57.5% and operating margins of 45.5% to 47.5%.

The company also raised its full‑year fiscal 2025 revenue growth target to 30% from 20%, reflecting confidence in sustained AI‑driven demand.

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