The AI boom drives revenue to a new high! TSMC's Q2 profit surged by 61%, far exceeding market expectations.

Benefiting from the continued high demand for AI chips, the global wafer foundry leader TSMC delivered impressive results in the second quarter of 2024, with a nearly 61% year-on-year increase in net profit, and both revenue and profitability exceeding market expectations, setting a historical high. However, potential trade risks may still pose challenges to future growth.

TSMC's profit hits a record high, with a revenue growth of 38.65% year-on-year.

TSMC announced its Q2 2025 financial report on Thursday, with a net profit of NT$398.27 billion, a significant increase of 60.7% compared to the same period last year. Revenue amounted to NT$933.8 billion, showing a year-on-year growth rate of 38.65%, both surpassing market expectations.

According to market forecasts from LSEG SmartEstimates, TSMC's revenue for the second quarter was originally estimated at 931.2 billion yuan, with the actual results slightly higher; while the net profit expectation was 377.86 billion yuan, which was significantly surpassed by the actual data.

These strong financial report figures highlight TSMC's key role in the AI era, with its advanced process chips being boosted by strong demand from major customers such as Nvidia and Apple.

The AI wave continues to drive chip demand.

With the explosive growth of artificial intelligence applications, the demand for AI servers to end devices continues to rise, and TSMC's shipments of 5nm and 3nm process chips have increased significantly, driving overall revenue higher.

Among them, orders from Nvidia are an important growth driver for TSMC. Nvidia's AI accelerators H100, H200, and other chips are all manufactured by TSMC's advanced processes. Apple's M series and A series chips also rely on TSMC's technology.

However, despite strong short-term performance, TSMC still faces some potential risks, particularly geopolitical and trade policy variables.

The United States' restrictions on high-tech exports to China continue to affect TSMC's business, particularly as Nvidia and AMD, which hold a place in the Chinese market, are also subject to these restrictions.

However, the situation has slightly improved. Nvidia and AMD announced this week that they have received permission from the U.S. government to resume shipments to the Chinese market within a certain range, bringing a glimmer of hope to the overall semiconductor industry.

This article discusses how the AI boom has driven revenue to a new high! TSMC's Q2 profit surged by 61%, far exceeding market expectations, first appearing in Chain News ABMedia.