TSMC hits $1 trillion valuation on AI chip boom
What's the story
The Taiwan Semiconductor Manufacturing Company (TSMC) has hit a major milestone by joining the $1 trillion market-cap club. The company's shares soared to an all-time high on Friday, giving it a valuation of over $1 trillion. This comes after strong second-quarter earnings and continued demand for artificial intelligence (AI) chips.
Market surge
TSMC's shares soar after strong Q2 earnings
TSMC's shares traded in Taiwan hit a record high on Friday, giving the company a valuation of $1 trillion for the first time. Its US-traded American Depository Receipts (ADRs) were worth around $1.2 trillion. The stock has jumped nearly 50% since hitting a low in April, primarily due to strong second-quarter earnings and robust demand for AI chips from top tech companies like Apple, NVIDIA, and Qualcomm.
Future prospects
Q3 growth will be supported by leading-edge process technologies: TSMC
TSMC's leaders are hopeful that the company's growth will continue in the second half of the fiscal year, despite rising competition. "Our business in the second quarter was supported by continued robust AI and HPC-related demand," said CFO and VP of Product Wendell Huang. He added, "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies."
Financial performance
TSMC's Q2 revenue jumps 38% YoY
In the last quarter, TSMC reported a 38% year-over-year revenue increase. It also witnessed a 12% revenue increase and a 10% net income jump from Q1. The company's rise to a $1 trillion valuation comes after NVIDIA, one of its top customers, made history as the first company to hit a $4 trillion valuation earlier this month.