TSMC crushed Q2 earnings with a 61% profit surge, fueled by booming AI chip demand. Revenue hit NT$933.80 billion ($31.7B), beating estimates and marking a 38.65% year-over-year jump.
The world’s top contract chipmaker forecasts Q3 revenue between $31.8B and $33B — up 38% year-over-year and 8% sequentially. CEO C.C. Wei expects full-year 2025 revenue to climb ~30%, powered by AI and cutting-edge tech growth.
TSMC’s high-performance computing (HPC) unit, including AI and 5G chips, drove 60% of Q2 revenue — up from 52% last year. Advanced nodes under 7nm made up 74% of wafer revenue, highlighting a shift to smaller, more powerful chips. 
TSMC works closely with Nvidia and Apple, riding the AI chip wave.
Brady Wang from Counterpoint Research said:
“The primary driver of growth for TSMC has been the robust demand for AI related chips, particularly for the leading edge nodes below 7nm.”
“Surging demand from the AI boom is highly sustainable in the near term, with AI still in its very beginning stages and continues to expand across industries.”
Trade tensions with the U.S. and China pose threats. Taiwan faces 32% tariffs under Trump’s trade policy, with talks ongoing. Wei acknowledged the uncertainty:
“Looking into second half of 2025 we have not seen any change in our customers behavior so far. However, we understand there are uncertainties and risk from the potential impact of tariff policies.”
U.S. export controls also restrict business with China, though Nvidia and AMD recently received government assurances to ship products there again.
Other headwinds include Taiwan dollar strength and potential smartphone and PC order cuts amid global economic concerns, per SemiAnalysis analyst Sravan Kundojjala.
Shares jumped over 4% early on Robinhood after the report.
TSMC remains the AI chip king for now, but geopolitical risks are mounting fast.
