TSMC Taipei shares rise on strong Q2 earnings, robust guidance

Investing.com-- Shares of Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) rose on Friday following a robust second-quarter earnings report, underpinned by surging demand for artificial intelligence chips and an upgraded revenue outlook.

TSMC on Thursday posted a record quarterly net profit of T$398.3 billion ($13.53 billion) for the April–June period, a 60.7% year-on-year increase and exceeding analyst forecasts.

Revenue surged 38.6% to T$933.79 billion, driven by strong sales of advanced process technologies, including 3‑, 5‑ and 7‑nanometre chips.

Taipei-listed shares of the company rose 1.8% to T$1,150 as of 02:27 GMT on Friday. The stock was just short of breaching its record high level of T$1,160.

U.S.-listed TSMC shares closed 3.4% higher on Tuesday.

CEO C.C. Wei attributed the stellar results to accelerating demand from high-performance computing and AI workloads.

TSMC also raised its full-year revenue growth forecast to around 30% in U.S. dollar terms, up from the mid-20% range, and issued upbeat Q3 guidance projecting revenue of $31.8 – $33 billion.

However, the company cautioned that potential U.S. tariffs and currency headwinds could temper margins later this year. Wei also warned that tariffs could hurt demand for non-AI chips.

This led to declines in other Asian chipmaker stocks on Friday, with Japan’s Advantest Corp. (TYO:6857) falling more than 4%, and Tokyo Electron (TYO:8035) losing 0.6%. South Korea’s Samsung Electronics Co (KS:005930) edged 0.2% lower.

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