Taiwan Semiconductor Manufacturing Company (TSMC) posted better-than-expected second-quarter performance, boosting investor confidence as it raised its 2025 outlook.
The firm benefited from strong demand for high-end semiconductors as tech giants such as Apple and Nvidia build out their artificial intelligence (AI) capabilities.
In the three months, TSMC posted net income of €11.7 billion, up 60.7% year-on-year.
Second-quarter revenue rose 38.6% year-on-year to €27.35 billion, compared with the first quarter of 2025, which saw an 11.3% increase in revenue and 10.2% in net income.
Quilter Cheviot analyst Ben Barringer said TSMC beat market expectations with margins remaining strong, despite being affected by the strengthening Taiwan dollar.
TSMC Senior Vice President Wendell Huang said the second-quarter performance was driven by continued demand for AI and HPC, and he expects continued strong growth in the coming quarters.
TSMC raised its third-quarter forecast, expecting annual sales growth to exceed 30%, up from a previous estimate of 25%. Revenue for the quarter is expected to be between $31.8 billion and $33 billion.
Taiwan is negotiating with the United States to lower trade tariffs on its exports, which are currently subject to tariffs as high as 32% by President Donald Trump.
