Shares in Taiwan Semiconductor Manufacturing (TSM) rose on Wednesday following the company’s strong second-quarter sales growth driven by the ongoing AI boom and increased global investment in data centers.
TSMC, the leading chipmaker and exclusive supplier of advanced chips to Nvidia and Apple, reported a June revenue of NT$207.9 billion. This contributed to a 40% growth in the June quarter, reaching NT$673.5 billion, surpassing the average projection of a 35.5% increase.
The company’s US-listed shares saw a 1.7% increase in premarket trading.
The demand for AI chips has helped offset the decline in smartphone sales, which are now showing signs of recovery.
TSMC and other AI-related stocks in Taiwan have significantly boosted the Taiex Index by over 40% in the last year, despite the ongoing US-China geopolitical tensions related to the island.
In the US, the chipmaker’s shares have surged by more than 77%, outperforming the broader market.